EPACK Durables Ltd. share price target

About the stock: EPACK Durable Limited (Epack) is a prominent Indian Original Design Manufacturer (ODM) and Original Equipment Manufacturer (OEM) specializing in room air conditioners (RACs), small domestic appliances (SDA) i.e. induction cooktops, mixer-grinders, water dispensers, large domestic appliances...

Diversification beyond RAC to drive sustainable growth: Epack, started as an OEM manufacturer for RAC brands, has gradually evolved into a leading ODM player in the RAC segment. While RAC (72% in FY25, 58% in FY26E owing to weak summer) continues to remain the key revenue driver, the company is actively diversifying its portfolio into SDA, LDA and component manufacturing with an aim to reduce the same to ~55% by FY28/29. This strategic shift is aimed at reducing the inherent seasonality of the RAC business while building a more balanced and stable revenue...

Topline miss was offset by stronger margins, resulting in EBITDA and PAT

Significant miss on estimates; demand hit by unseasonal rains and deferment of purchase due to GST rate cut implementation

The company reported revenue decline of 14.4% YoY, primarily due to exceptionally high base YoY when industry witnessed 70% growth and early monsoon.

Issue Snapshot: Issue Open: January 19 January 23, 2024 Price Band: Rs. 218 230 *Issue Size: Up to 27,828,351 eq sh (Fresh Issue of Rs. 400 cr + Offer for sale of upto 10,437,047 eq sh) Reservation for: QIB upto 50% eq sh Non-Institutional atleast 15% eq sh ((including 1/3rd for applications between Rs.2 lakhs to Rs.10 lakhs)) Retail atleast 35% eq sh Face Value: Rs 10 Book value: Rs 61.0 (September 30, 2023) Bid size: - 65 equity shares and in multiples thereof 100% Book built Issue IPO Note - EPACK Durable Limited

IPO NOTE