EPL Ltd. share price target

We interacted with EPL's MD and CEO Mr. Sudhanshu Vats for an overall update on its business performance. The discussion included some key factors such as: a) future growth drivers, b) product pipeline/new initiatives, c) gradual shift from...

AMESA performance impacted topline EPL's Q3FY21 Revenue, EBITDA and net profit grew ~8%, 0.4% and 18% YoY to `7.7bn, `1.6bn and `709mn respectively. Topline saw subdued performance in AMESA region. Management highlighted weakness in beauty & cosmetics segment and temporary shifts from tubes to larger packs impacting overall volume performance despite most of the end-consumer companies reporting healthy volume growth. Personal care performance was however strong in other geographies aided by shift to laminated...

EPLL reported strong growth across EAP and the Americas region. This was primarily led by an increase in Personal Care revenue share in the EAP region. Operating profit was offset by sluggish performance in Personal Care in the AMESA region, coupled with higher employee and other expenses cost (attributable to expansion on the West Coast of America). 3QFY21 revenue was in line with our estimate, while EBITDA/PAT was below our expectation. Due to slower pick-up in AMESA and Americas, amid COVID-related lockdowns, we decrease our FY21E earnings estimate by 7%,...

Acquisition of Creative Stylo Packs for `2.5bn In line with its ambitions of scaling-up presence in Beauty and Cosmetics segment, EPL announced the acquisition of Creative Stylo Packs. The company is engaged in the business of plastic tubes, laminated tubes and corrugated boxes for the Beauty & Cosmetics and Pharma industry with marquee clients such as L'Oreal, Marico, Zydus etc. Annual production of 200mn tubes specialty plastic and decoration (Enough headroom for capacity and would be rationalize further); most of the business comes from Beauty and cosmetics (~85-90%) and 10-15% from...

EPL Ltd. (EPLL) reported strong growth across Europe and the EAP region amid the COVID-19 crisis. This was primarily led by an increase in market share and new customer additions. Operating profit was offset by sluggish performance in Oral Care in the AMESA region. 2QFY21 numbers were in line with our estimates, and we maintain our estimates for FY21. However, in the backdrop of the acquisition, we increase our earnings estimate for FY22/FY23E by 6%/3%. Maintain Buy....

9 September 2020 We interacted with Essel Propacks (ESEL) management to learn and discuss some key factors such as (a) future growth drivers, (b) improving performance in Europe, (c) gradual shift from plastic to laminated tubes, and (d) growing At the peak of COVID-19, ESEL launched a new product Hand Sanitizer tubes in just 15 days to meet the sudden demand surge. This new product segment under Personal care is expected to provide steady volumes, as Sanitizers are increasingly becoming a part of daily consumption. Under Phase-I of project Phoenix, ESEL managed to increase EBITDA margin by 180bp YoY to 20.2% in FY20. ESELs integrated operations, right from laminating-to printing to tubing makes it a one-stop solutions for its clients, thereby allowing the company to form long-term partnerships. Further, the companys 7-stage pipeline development process/customer acquisition, has led to signing-up of several new customers in Oral and Personal care segments, which should be a key growth driver.

Europe, EAP regions revenue growth drive topline On the geography front, East Asia Pacific region (mainly China), Europe revenue grew strongly by 46%, 30% YoY, respectively, in Q1FY21 led by strong performance of new product category, addition of new clients. America's revenue grew ~11% YoY mainly due to ~31% YoY growth in personal care segment. Africa, Middle East, South Asia (AMESA) region mainly India, Egypt, reported ~3% revenue decline due sluggish demand of personal care products amid pandemic related lockdown. We model ~12%...

31 July 2020 Essel Propack Essel Propack (ESEL) reported strong growth (13.6% constant currency growth) across geographies amid the COVID-19 crisis, primarily led by East Asia Pacific (EAP) and Europe. The ramp-up in operations led to an increase in operating leverage in EAP and Europe. Factoring a beat to our estimates for the quarter, we increase our earnings estimate for FY21/FY22E by 20%/12%, after considering a further ramp-up in operations and new launches across geographies, to arrive at TP of INR253. strong performance in EAP and Europe. EBITDA margins expanded by 250bp is attributable to a better product mix and operating leverage, including INR380m). AMESA revenue declined 3% YoY to INR2.2b. EBIT margins contracted by 190bp to 7.3% and EBIT decreased to INR160m (down 23% YoY). EAP revenue increased by 46% YoY to INR2b on a growing business pipeline in China and increased focus on regional players. The EBIT margin expanded 880bp to 21.7%, with EBIT at INR438m (up 2.