Company Update - EPL Ltd - ICICI Direct

EPL has guided for strong order in pipeline for FY22 (up 29% YoY in April 2021) led by client addition and wallet share gains from existing customers. EPL is also looking to expand its product portfolio into the health & hygiene category in FY22. We believe EPL's oral care category (contributes ~54% in topline) will grow at 8% in FY21-23E, higher than its historical average of 5% (in FY18-21). We believe client addition and new product launch will help drive segment revenue growth. Further, EPL has been selected as a preferred partner for its 100% recyclable 'Platina Tube' for the oral care products of Unilever and GSK Consumer Healthcare. Further, personal care segment (~46% of topline) is likely to be a key growth driver for it in FY21-23E. The segment is likely to grow at 12% CAGR led by a recovery in the Amesa business. Historically, Amesa region revenues were hit by lower offtake of personal care products. However, in FY21-23, we build in Amesa region revenue CAGR of 9% (vs. 2% in FY18-21) supported by consolidation of 'Creative Stylopack' and pick up in personal care products. On the balance sheet front, reduction in gross debt by 16% YoY and increased dividend payout was largely due to rationalisation of capex in FY21.

For details, click on the link below: Link to the report

Shares of EPL LTD. was last trading in BSE at Rs.253.45 as compared to the previous close of Rs. 253.95. The total number of shares traded during the day was 24081 in over 1588 trades.

The stock hit an intraday high of Rs. 262 and intraday low of 250. The net turnover during the day was Rs. 6193871.

Source : Equity Bulls

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