Motilal Oswal's research report on EPL
We believe EPL with its new management under Blackstone is destined for long-term growth, driven by: a) growing revenue contribution from Personal Care products, b) a gradual shift to laminated tubes from plastic/aluminum tubes, c) a recovery in travel tube, with the lifting of travel restrictions across the globe, d) higher revenue sustainability owing to long-term contracts in the Oral Care segment, and e) customer additions across geographies as well as greater cross-selling opportunities. -However, EPL has been witnessing margin pressures since the last five quarters, which is likely to continue in the next couple of quarters too due to volatility in raw material prices. We believe EPL deserves to trade at higher multiples than its peers owing to its better global presence, strong management and leadership position in the Oral Care segment.
Outlook
We value the stock at 21x FY24E EPS to arrive at our TP of INR250. We maintain our BUY rating on the stock.
More Info
At 13:30 hrs EPL was quoting at Rs 184.90, up Rs 1.80, or 0.98 percent.
It has touched an intraday high of Rs 185.75 and an intraday low of Rs 183.00.
It was trading with volumes of 9,098 shares, compared to its thirty day average of 38,355 shares, a decrease of -76.28 percent.
In the previous trading session, the share closed down 2.16 percent or Rs 4.05 at Rs 183.10.
The share touched its 52-week high Rs 294.00 and 52-week low Rs 148.95 on 05 July, 2021 and 07 March, 2022, respectively.
Currently, it is trading 37.11 percent below its 52-week high and 24.14 percent above its 52-week low.
Market capitalisation stands at Rs 5,840.45 crore.
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