2021-07-30 EPL Ltd. Motilal Oswal

246.55 320.00 246.55
(-5.56%) 37.43 Buy

Lower margins across regions, except AMESA

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....

2021-07-30 EPL Ltd. ICICI Securities Limited 246.55 275.00 246.55
(-5.56%) 18.10 Hold

EPL Ltd.

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...

2021-06-11 EPL Ltd. ICICI Securities Limited

 

253.35 275.00 253.35
(-8.09%) Target met Hold

EPL Ltd.

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...

2021-02-16 EPL Ltd. Motilal Oswal 219.65 333.00 219.65
(6.01%) 43.01 Buy

Strong pipeline provides growth visibility

We interacted with EPLs 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...

2021-02-04 EPL Ltd. Way2Wealth 218.90 218.90
(6.37%) Accumulate

Light House Update - A Quick Perspective - EPL Ltd. - 04 February 2021

AMESA performance impacted topline EPLs 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...

2021-02-03 EPL Ltd. Motilal Oswal

219.05 333.00 219.05
(6.30%) 43.01 Buy

EAP and Americas carry the baton!

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%,...

2020-11-18 EPL Ltd. Way2Wealth 265.75 330.00 265.75
(-12.38%) 41.72 Buy

Light House Update - A Quick Perspective - EPL Ltd. - 18 November 2020

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 LOreal, 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...

2020-11-13 EPL Ltd. Motilal Oswal

252.75 326.00 252.75
(-7.87%) 40.00 Buy

AMESA and Europe drive overall performance

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....

2020-10-07 EPL Ltd. Way2Wealth 254.40 254.40
(-8.47%) Buy 2020-10-01 EPL Ltd. Ashika Research 250.90 290.00 250.90
(-7.19%) Target met Buy 2020-09-09 EPL Ltd. Motilal Oswal

278.90 314.00 278.90
(-16.51%) 34.85 Buy

Best placed for next growth trajectory

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.

2020-08-01 EPL Ltd. ICICI Securities Limited

 

234.00 270.00 234.00
(-0.49%) Target met Buy

Essel Propack

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. Americas 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%...

2020-07-31 EPL Ltd. Motilal Oswal

234.00 253.00 234.00
(-0.49%) Target met Buy

Strong performance amid weak environment

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.

2020-07-31 EPL Ltd. CD Equisearch

259.30 230.00 259.30
(-10.20%) Target met Accumulate

Essel Propack Ltd

y-o-y, oral care category which contributed to almost 51% of the total revenue, experienced an impressive growth in sales (10.4%) in the June quarter. With this unexpected revenue performance, the quarter recorded the one of the highest quarterly profits (adj. EBITDAEBITDA Rs. 151.76 cr) for Essel....

2020-06-15 EPL Ltd. ICICI Securities Limited

 

175.20 190.00 175.20
(32.91%) Target met Hold

Essel Propack

Amesa, EAP regions revenue growth marred by lockdown While America & Europe (together contribute ~50% to topline) regions reported revenue growth of 4% & 16% YoY in Q4FY20 (~5%, ~16%, respectively, in FY20), lower volume offtake in the Amesa and EAP regions hurt overall topline growth. Strong revenue growth in Americas and Europe was due to lower base, new customer. Adjusted with Covid-19 impact, topline in Q4FY20 would have up 7% YoY. Further, revenue growth in Americas, Europe is likely to remain intact owing to new client addition and...

2020-05-23 EPL Ltd. Motilal Oswal

169.95 200.00 169.95
(37.01%) Target met Buy

COVID-19 impacts overall performance

23 May 2020 Essel Propack Revenue across EAP and AMESA region was impacted during 4QFY20 due to the lockdown in China and India (Mar20). However, this was offset by robust growth in Europe and Americas region. Thus, overall consolidated revenue declined 1% YoY. We have cut our estimates for FY21/FY22E by 14%/5%, factoring in the slowdown in business across multiple geographies to arrive at a TP of INR200. Maintain Revenue declined marginally by 1% YoY to INR6.8b (v/s est. INR7.3b), primarily due to sluggish performance in EAP and AMESA (for certain portion of the quarter). EBITDA margins expanded by 110bp YoY to 20.1% (v/s est. 20.7%), largely due to improvement in the overall product mix and strong growth in the Europe region. However, this was offset by margin contraction in AMESA and Americas region. Adj. PAT declined 1% YoY to INR486m (v/s est.

2020-03-03 EPL Ltd. Motilal Oswal 173.25 210.00 173.25
(34.40%) Target met Buy

Embarking on the next growth trajectory

Furthermore, EPL has set up of a greenfield unit in Assam, India (annual capacity of ~220m tubes) and is focused on building a strong business development pipeline in China. EPL remains focused on both these segments as (a) long-term contracts with its oral care clients provide strong medium- to- long-term growth visibility and (b) improving share of personal care category is expected to drive overall margins as market value of personal care is 3-4x that of oral care. Blackstone has completely revamped EPLs board with fit-for-purpose professionals and brought in industry veterans for providing strategic guidance and growth initiatives. EPL has also restated its growth strategy under the tutelage of Blackstone and shifted its area of focus on accelerating growth in Personal Care, maintaining leadership position in Oral Care and prudent allocation of capital across its regions of operations. EPL could also leverage upon Blackstones strong capital base for organic and inorganic expansion.

2020-01-23 EPL Ltd. CD Equisearch

186.00 156.00 186.00
(25.19%) Target met Hold

Essel Propack Ltd

es in America and Europe (revenue growth of 14.8% and 17.7% y-o-y respectively in the same period). ). While Personal Care category grew by 21.3% y-o-y, Oral Care category which contributes to almost 58% of the...

2019-08-16 EPL Ltd. ICICI Securities Limited

 

99.75 95.00 99.75
(133.43%) Target met Sell

Essel Propack

Essel Propack (EPL) reported flattish topline (down ~9% QoQ) led by poor performance in AMESA and EAP regions (mainly India and China respectively). While India demand slowdown due to macro headwinds, the Chinese revenue slowdown was largely due to ongoing US-China trade issues. Despite significant rise in the contribution of non oral care to topline (up from 40.7% in Q1FY19 to 46.6% in Q1FY20) the EBITDA margin was under pressure mainly due to sharp decline in the profitability of the AMESA regions. We believe, the lumpiness of domestic business coupled with...

2019-07-04 EPL Ltd. CD Equisearch

 

130.80 155.00 130.80
(78.02%) Target met Accumulate

Essel Propack Ltd

Lower offtake by key customers in India during the quarter crippled growth in net revenues to 1.5% (y-o-y) y) in Q4FY19 in AMESA. Egypt continued to post strong revenue growth for the quarter at 27.7% (18.0% on constant currency basis) helped by both oral and non--oral care categories. Offtake in oral care category in China has been declining over the past few years despite the subsidiary retaining its wallet share with key customers. In the United States, a second very high-speed...

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