Buy EPL, target price Rs 333: Motilal Oswal

Buy EPL, target price Rs 333: Motilal Oswal
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Synopsis

EPL Ltd., incorporated in the year 1982, is a Mid Cap company (having a market cap of Rs 6934.55 Crore) operating in Packaging sector.

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Promoters held 52 per cent stake in the company as of Dec 30, 2020, while FIIs held 13.8 per cent, DIIs 15.6 per cent and public and others 18.7 per cent.

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Motilal Oswal has buy call on with a target price of Rs 333. The current market price of EPL Ltd. is Rs 220.15.
EPL Ltd., incorporated in the year 1982, is a Mid Cap company (having a market cap of Rs 6934.55 Crore) operating in Packaging sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 770.30 Crore, down -.41 % from last quarter Total Income of Rs 773.50 Crore and up 7.74 % from last year same quarter Total Income of Rs 714.99 Crore.

Investment Rationale
The brokerage expects revenue/EBITDA/PAT CAGR of 12%/16%/25% over FY20-23E. It values the stock at 25x FY23E EPS. Its TP of INR333/share implies 50% upside.

Promoter/FII Holdings
Promoters held 52 per cent stake in the company as of Dec 30, 2020, while FIIs held 13.8 per cent, DIIs 15.6 per cent and public and others 18.7 per cent.

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