EPL Ltd. share price target

We met Essel Propack's (ESEL) management to understand the traction in its non-oral care business and the progress on commercial orders from European customers. management's commentary. We believe that its investments in non-oral care customers in Europe should pay off gradually as trials get translated into commercial orders. growth. Europe should ramp up faster given with new facility in Russia and the shift of nonoral care customers to ESEL's laminated packaging solutions. ESEL has recovered Rs650m from a related party out of the total of Rs1.1bn as of Mar18. Management said that the company will receive the balance by Mar-19. The proceeds will be utilized to pay off debt. We maintain our Hold rating with a revised TP of Rs120, valuing it at 15x FY21E EPS. The...

Essel's consolidated sales growth of ~17% YoY was led by strong performance of all regions, largely on a lower base wherein performance of Amesa and Europe region was hurt by GST led transition (in India) and lower volume offtake by key customer in Europe. In Q3FY19, revenue contribution of non-oral category to consolidated sales increased from 41.3% in Q3FY18 to 43.5% in Q3FY19. According to management, Amesa region (contributes 38% to topline) will record healthy performance, going forward, as...

Revenue growth was restricted to 7% YoY in Q2FY19 as strong performance in EAP, Americas and Europe region was offset by weak sales in AMESA. EAP revenue grew by 16.6% in Q2FY19 led by increased contribution from non-oral care category while Europe revenue rose by 12% YoY led by strong growth in Poland. AMESA region disappointed with 1.2% YoY decline in revenue in Q2FY19 mainly due to weak...

On a consolidated basis, the company witnessed sales growth of 6.8% YoY to | 683.5 crore (vs. I-direct estimate: | 700.1 crore) mainly led by double digit growth in EAP, Europe & Americas region. Revenues from the AMESA witnessed de-growth of 1.2% to | 233.7 crore. Europe revenues grew 11.8% to | 147.9 crore. EAP & Americans region witnessed growth of 16.6% & 11.2% to | 184.7 crore and | 143.5 crore respectively. Within Amesa, India business adversely impacted by low client offtake, pharma regulations and...

ICICI Securities Ltd | Retail Equity Research Essel Propack's Q1FY19 performances were largely driven by EAP & America regions with topline growth of ~18% YoY and 26%, respectively, led by a recovery in demand from existing clients. However, Amesa and European region's performance was marred by lower-than-expected volume offtake by key customers (Indian business hit by change in packaging norms under the pharma category coupled with lower offtake by key customers). Change in...

Essel Propack Ltd (EPL) made an announcement of bonus shares on April 26, 2018. The ratio was one bonus share for every one existing equity share i.e. 1:1. The record date for the same was May 18, 2018 while the ex-date for the same is today i.e. June 20, 2018. Consequently, EPL share price, as per yesterday's closing price, has dropped to | 123/share from |246/share....

Essel Propack (Essel) in 4QFY18 posted revenues of Rs 628 Cr. due to continued GST related impact on Indian operations; however Europe showed signs of recovery led by Germany.

Americas revenue grew by 6.5% in CC terms in Q4FY18 supported by strong performance of USA (up 8.4%) and Mexico (up 17.2%). EBITDA margin contracted by ~107 bps YoY to 18.5% as strong 240 bps YoY expansion in EBITDA margin in Americas region was marred by 60 bps decline in EBITDA margin in EAP and weak operating performance in Europe. We lower our revenue and adj.PAT estimates for FY19E/20E by 5%/6% and 11%/14% to factor in weak India sales and delay in rebound of European performance. However, we remain positive on the stock on the back of expected recovery in India...

Essel Propack's Q4FY18 performance marred by lower-thanexpected volume offtake by key customers in the AMESA (due to change in GST rate in November'17) and European regions, respectively. As a result, consolidated sales (net of GST) recorded muted growth of 2.6% YoY. Addition to this, America and EAP regions too grew at muted rate of ~4% and ~2% YoY, respectively. Lower than expected volume off-take resulting non oral care segment revenue contribution to decline by 120 bps YoY at 58.6% during FY18. According to the management, revenue growth in the...