Feb'25 View on EPL Ltd

EPL Limited (formerly known as Essel Propack Limited),is the largest specialty packaging global company, manufacturing laminated plastic tubes catering to the Beauty & Cosmetics, Pharma & Health, Food, Oral and Home. The company was acquired by the Blackstone group on Aug – 2019 from the Essel group of companies. The Blackstone Group is one of the leading investment firms in the world with an AUM of around USD 511 billion across sectors like private equity, real estate, hedge fund solutions and credit businesses. The Group also has an exposure in the packaging industry through acquisition of varied companies such as the USA based Graham Packaging, Owens-Illinois Inc, Ohio and China based packaging firm ShyaHsin. The stock made a recent high around 290 and fallen to take support at 200 level and risen sharply to 250 amd looks to cross 300 with following info • There was 9.4% yoy growth in personal care segment (49% of revenue in Q3). • Gross margin expanded 190 bps yoy to 60.2%. • EBITDA margin expanded 110 bp yoy to 19.9%, with improving margins in Americas/Europe. • Greenfield plant work initiated in Thailand & production is expected to start from H2FY26. • Strong margins in Europe and the Americas are expected to sustain. • EPL reported EBIDTA/PAT below our expectation in Q3. • EPL has guided for EBITDA margin to improve over 20% in the near-term. • We expect earnings to grow by 15.8% in FY26E & grow by 15.0% in FY27E. • Stock is currently trading at valuation of 18.2x P/E FY27E EPS.