Motilal Oswal Places Buy On Small Cap Packaging Stock, Claims Robust 35% Upside

Motilal Oswal in its equity report on EPL Ltd. assigns "Buy" on the stock with a target price of Rs 215/share. Considering the given target price, the stock is likely to give up to 35% return if purchased at the current market price. EPL is a packaging sector small-cap stock having a market capitalisation of Rs 5,083.40 crore.

Stock's Current Market Price, 52-Week Low/High, & Returns

EPL stock last traded at Rs 159.75/share, up 0.60% from the previous close. It recorded the 52 week low on 2 February 2022 at Rs 147/share and 52 week high on 16 December 2022 at Rs 193.40/share, respectively.

The stock over the past 3 years continuously declines. It declines 0.62% in 1 week, 0.9% in 1 month and 5.16% in 3 months, respectively. It declines 13.6% in 1 year and 8.4% in 3 years, respectively. It gains 26.33% positive return in 5 years.

Motilal Oswal Recommends Buy Stock With A Target Price Of Rs 215/Share

Motilal Oswal said, "With the demand recovery visible across geographies, along with the softening in raw material prices and price hikes across regions in recent months, we expect the sequential recovery in margin to continue. EPLL's earnings momentum is expected to improve further, driven by: 1) a growing revenue contribution from the B&C and Pharma segments, 2) a gradual shift to laminated tubes from aluminum tubes and rigid packaging, 3) customer additions across geographies as well as greater cross-selling opportunities, and 4) focus on sustainability, which will fuel double-digit profitable growth."

It added, "We expect a revenue/EBITDA/PAT CAGR of 12%/20%/34% over FY23-25. We value the stock at 19x Dec'24E EPS to arrive at a TP of INR215. We retain our BUY rating on the stock."

Disclaimer - The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.