Essel Propack has Fallen 25% but Motilal Oswal Has a Buy Recommendation on It

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Essel Propack has Fallen 25% but Motilal Oswal Has a Buy Recommendation on It
Credit: © Reuters.

By Aditya Raghunath -- EPL Ltd (NS: EPLI ) shares have been falling steadily since January 8 when it closed at Rs 274. The stock is now at Rs 220, a drop of almost 25% in just over two months. The company operates in the packaging space (for the FMCG and Pharma space) and is the largest manufacturer of laminated plastic tubes in India.

However, brokerage firm Motilal Oswal Financial Services Ltd (NS: MOFS ) is bullish on the stock and believes it has great growth potential in 2021. The firm has given Essel Propack stock a price target of Rs 333, an upside of over 51% from current levels. It says that a combination of a robust order book and growing domestic demand will hold Essel Propack in good stead.

Its’ report says, “EPL’s current product pipeline is robust and substantially higher when compared to previous years. FY22 product pipeline is 30-40% higher than that of FY21. It currently has additional orders of ~80m/90m/40m/20-30m tubes in India/Europe/the US/China, which provides long-term revenue and volume growth sustainability.

“Despite major headwinds faced throughout FY21, EPL maintained its leadership position and dominated ~50% of the Indian market.  EPL is in talks to sign a major customer in the domestic market. Excluding that client, the company single-handedly accounts for two-third of overall domestic volumes in India,” it added.

Essel Propack is majority-owned by US-based private equity player Blackstone (NYSE: BX ) Group.

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  • sharique anwar Khan @sharique anwar Khan
    It can go up to 300.but don't believe blindly see charts and nature of work of epl which can 💥.
    Like 2
  • kunju pm @kunju pm
    don't trust motilal oswal recommendations
    Like 27

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