ICICI Direct recommended hold rating on Essel Propack with a target price of Rs 136 in its research report dated May 09, 2019.
ICICI Direct's research report on Essel Propack
Essel Propack (EPL) reported top line growth of ~10% YoY led by strong revenue growth in the Americas and Europe regions by ~29% and ~16% YoY, respectively. However, Amesa regions (contributes ~34% to top line) revenue growth remained muted at ~2% YoY mainly due to lower volume offtake by its key customers in India. Better plant utilisation (in Americas & Europe) coupled with higher contribution of non-oral care business in the top line (up from 40.4% in Q4FY18 to 42.7% in Q4FY19) helped drive EBITDA margin during Q4FY19. The management has guided for better EBITDA margin (at ~18-19%) owing to better plant utilisation in the overseas business and rising contribution of the non-oral care business.
We maintain our target price and HOLD recommendation on the stock.
For all recommendations report, click here
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