Buy EPL; target of Rs 320: ICICI Securities

ICICI Securities's research report on EPL

EPL’s Q1FY26 print was impressive despite challenges; personal care tube revenue jumped 27.7% YoY; oral care dipped 2.8%. Company anticipates revenue momentum to sustain in personal care backed by innovation, geographical expansion, new logo addition, sustainability; it is now aspiring inorganic growth. It is evaluating a proposal for M&A in personal care segment. EPL has generated steady FCF, and is reducing debt which should support the addition of greenfield plants and M&A. We are impressed by a turnaround in Europe, and execution of Brazil facility.

Outlook

Retain our estimates and TP of INR 320 with an unchanged FY27E P/E multiple of 20x. Maintain BUY. EPL’s valuation is attractive at FY27E PE of 13.7x and FCF yield at 7% with EPS CAGR of 20% over FY25-27E.