Motilal Oswal's research report on EPL
EPL reported an EBITDA of INR2.3b (+22% YoY) in 1QFY26, in line with our estimate. This was driven by EBITDA growth across all regions, with Europe/America/EAP/AMESA witnessing a growth of 52%/35%/8%/2% YoY. EPL continued its trajectory of margin expansion (up 200bp YoY), supported by gains in Europe and the Americas. This was fueled by strategic restructuring, cost optimization, and an improving mix of the personal care segment in the overall portfolio (~54% in 1QFY26 vs. ~47% in 1QFY25). We maintain our estimates for FY26/FY27 and value the stock at 17x FY27E EPS to arrive at our TP of INR280. Reiterate BUY.
Outlook
We expect a CAGR of 9%/14%/22% in revenue/EBITDA/adjusted PAT over FY25-27. We value the stock at 17x FY27E EPS to arrive at our TP of INR280. Reiterate BUY.
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