EPL Ltd. share price target

We believe EPL with its new management under Blackstone is destined for longterm 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 crossselling opportunities. However, EPL has been witnessing margin pressures since the last five quarters,...

Performance of America and European regions has remained volatile amid pandemic led challenges. This, coupled with improved revenue contribution from personal care segment, would help drive future margins...

EPLL reported a lower than expected operating performance in 3QFY22 due to a 500bp gross margin decline to 55% on higher raw material prices and freight cost. EBIT margin contracted across geographies, with a major...

Factoring in its 2QFY22 performance, we decrease our FY22E/FY23E earnings estimate by 20%/8% due to higher RM prices and expenses on account of increased freight cost and supply-chain disruption. We value the stock at 25x FY23E EPS to arrive at our TP of INR285. We maintain our Buy rating....

sonal care categorycategory which accounts for 43% of the total tube revenues- grew by 13.9% y-o-y, y, while oral care category grew by...

Performance of America and European regions has remained volatile amid pandemic led challenges. This, coupled with improved revenue contribution from personal care segment would help drive future margins...

EPL Ltd. (EPLL) reported a weak operating performance in 1QFY22 on the back of higher other expenses due to an increase in freight costs and onetime expenses. Factoring in the 1QFY22 performance, we decrease our earnings estimate for FY22 by 6% on account of a slower pickup in volumes post the total shutdown in Colombia and the shutdown of its unit in Russia. On the other hand, we maintain our earnings estimate for FY23. We value the stock at 26x FY23E EPS to arrive at TP of INR320. Maintain Buy....

The management has guided for double digit revenue growth in FY21-23E (we estimate ~10%) led by 8%, 12% revenue CAGR in the oral and personal care segment, respectively. The company has a strong order in pipeline (29% growth in April 2021 over April 2020) supported by new customer addition in Europe. We believe new client addition, consolidation of Stylopack in Amesa and increasing wallet share from existing clients in all...