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Last Updated : Feb 12, 2018 08:59 PM IST | Source: Moneycontrol.com

Buy Essel Propack; target of Rs 317: Edelweiss Securities

Edelweiss Securities is bullish on Essel Propack has recommended Buy rating on the stock with a target price of Rs 317 in its research report dated February 5, 2018.

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Edelweiss Securities' research report on Essel Propack


Essel Propack (EPL) reported lower-than-estimated Q3FY18 performance with revenue, at INR6.0bn, growing mere 1% YoY (net of GST); constant currency (CC) growth too came in at paltry 2% YoY (Q2FY18: 15%). While India and overall AMESA turned in a good show with EBIT jumping 65% YoY driven by operational efficiencies, EAP too reported stable 15% YoY EBIT growth.

Outlook

We build in 9%/11% growth in revenue/EBITDA driven by management’s time bound focus to improve performance in Europe and continued stable performance in other geographies. We value the stock at 9.0x FY20E EV/EBITDA, yielding TP of INR317. Maintain ‘BUY’.

For all recommendations report, click here


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First Published on Feb 5, 2018 08:47 pm
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