EPL Limited, a global leader in tube packaging owned by The Blackstone Group and headquartered in Mumbai, specializes in laminated plastic tubes for the FMCG and Pharma industries. With a presence in 12 countries and over four decades of experience, the company is renowned for its innovative packaging solutions, including mini-tubes and seamless plastic tubes, driven by a team of world-class technologists.
EPL share price is up 17.86% Year to date, trading at Rs. 203.55 as of 22nd November, 2023. The company is profitable and is valued at a PE ratio of 25.68. The current market cap is 6480 Crore, making it one of the small-cap companies.
In this post, we are going to learn about EPL’s share price target for 2024 to 2030.
About EPL
EPL Limited, once known as Essel Propack Limited, stands out as a leading global specialty packaging company. Our primary focus is creating laminated plastic tubes for various industries, including Beauty & Cosmetics, Pharma & Health, Food, Oral Care, and Home products.
Our global reach is substantial, with an annual production of around 8 billion laminated tubes. We have a strong presence in the Oral Care sector and play a significant role in the Personal Care industry and beyond. EPL operates in 21 manufacturing facilities across 11 countries and boasts an innovation platform that holds 89 granted patents.
Geographically, India forms the core of our operations, representing 76% of our activities, while the rest of the world makes up the remaining 14%.
In terms of leadership, there have been some recent changes in our Key Management Personnel (KMP). Mr. Sudhanshu Vats stepped down from his role as Director, CEO, and Managing Director for personal reasons. Mr. Anand Kripalu took over these responsibilities starting on August 18, 2021. In addition, Mr. Amit Jain assumed the role of Chief Financial Officer (CFO), while Mr. Parag Shah resigned from the CFO position effective March 31, 2022.
EPL Limited doesn’t limit its operations to India alone. We have expanded into 10 other countries through direct and step-down subsidiaries and one associate. These subsidiaries are organized into four regions: AMESA, EAP, EUROPE, and AMERICAS. Notably, we acquired a 73% equity stake in Creative Stylo Packs Private Limited (CSPL) on February 1, 2021, making CSPL a subsidiary of EPL.
A crucial element in our success is our strong promoter group. As of October 18, 2022, the Blackstone Group L.P., through Epsilon Bidco Pte. Ltd., held a substantial 52% stake in EPL. Blackstone, as our sponsor, not only owns a significant portion but also provides robust financial support, enhancing our financial stability.
EPL Q2 FY2024 Key Points
In Q2 FY2024, EPL Ltd. showcased a strong financial performance with a notable 10% quarter-on-quarter and 6% year-on-year growth in revenue.
This growth was well-distributed across various global regions. Particularly impressive were the gains in East Asian and Pacific Affairs/Americas, each recording a 13% increase year-on-year.
Other regions such as Africa, the Middle East, South Asia, and Europe also contributed significantly to this growth trajectory, with increases in the range of 5% to 6% year-on-year. This broad-based regional growth underlines EPL’s robust market presence and strategic expansion.
- Revenue Performance: EPL reported a total revenue of ₹1001.60 crore for the period, indicating the total income generated from its business activities.
- Cost Management: The cost of revenue totaled ₹427.60 crore, leading to a gross profit of ₹574.00 crore. This shows the company’s efficiency in managing the direct costs associated with its revenue generation.
- Operating Expenses and Income: Selling, General, and Administrative (SG&A) expenses were ₹193.20 crore, and other operating expenses totaled ₹199.80 crore. After accounting for all operating expenses (₹904.20 crore), the operating income stood at ₹97.40 crore, reflecting the company’s profitability from its core operations.
- Net Income: The net income before taxes was ₹77.50 crore, but after accounting for income taxes (₹25.40 crore) and minority interest (₹-1.60 crore), the net income was ₹50.50 crore. This figure represents the actual profit after all expenses and taxes.
- Earnings Per Share (EPS): The Diluted EPS, excluding extraordinary items, was ₹1.58. This metric is crucial for investors as it indicates the company’s profitability on a per-share basis.
- Dividend Payout: The dividend per share for common stock’s primary issue was ₹2.15, showing the amount returned to shareholders from the net income.
Q1 FY 2024 Key Points And Summary:
- Revenue Growth: EPL achieved a solid 9.2% revenue growth, indicating an expanding market presence.
- Strong Cash Flow: The company’s strong cash flow led to reduced net debt and a low Net Debt/EBITDA ratio of 0.43x.
- Improved ROCE: EPL’s Return on Capital Employed (ROCE) increased to 16.2%. This growth was driven by a year-on-year (YoY) increase of 98 basis points (bps) and an increase of 119 bps.
- PAT Growth: EPL recorded an impressive 82.3% YoY growth in Profit After Tax (PAT).
- Brazil Expansion: EPL is actively expanding its operations in Brazil.
- Strong EBITDA Margin: In Q1FY24, the company maintained a robust EBITDA margin of 17.9%. This represented a year-on-year increase of 282 basis points (bps) and a sequential increase of 69 bps.
- EBITDA Growth: EBITDA also grew significantly, with a 29.6% YoY increase.
| When | Maximum Price | Minimum Price |
| November 2023 | ₹215.88 | ₹178.07 |
| December 2023 | ₹222.35 | ₹183.95 |
- Maximum Price for the Year: The maximum price for the year for EPL is expected to occur in December 2023, with a share price of ₹222.35.
- Minimum Price for the Year: The minimum price for the year will probably be in November 2023, with a share price of ₹178.07.
Between November and December 2023, EPL’s expected share prices demonstrate a mix of price fluctuations and a positive upward trend. EPL’s share price for November is expected to start at ₹178.07, with projections of climbing to ₹215.88, maintaining the upward momentum. December reinforces this optimistic outlook for EPL, with the share price expected to range between ₹183.95 and ₹222.35.
| When | Maximum Price | Minimum Price |
| January 2024 | ₹216.48 | ₹179.54 |
| February 2024 | ₹210.69 | ₹183.21 |
| March 2024 | ₹214.99 | ₹186.95 |
| April 2024 | ₹208.73 | ₹181.50 |
| May 2024 | ₹205.64 | ₹178.82 |
| June 2024 | ₹213.05 | ₹185.26 |
| July 2024 | ₹210.92 | ₹183.41 |
| August 2024 | ₹219.35 | ₹190.74 |
| September 2024 | ₹228.13 | ₹198.37 |
| October 2024 | ₹223.65 | ₹194.48 |
| November 2024 | ₹230.36 | ₹200.32 |
| December 2024 | ₹236.12 | ₹205.32 |
In January 2024, it is foreseen that EPL’s share prices will fall within the range of ₹179.54 to ₹216.48, displaying a conspicuous price spread. This pattern is projected to persist into February, with share prices ranging from ₹183.21 to ₹210.69. Moving into March, the upward momentum for the shares is expected to become increasingly prominent, reaching ₹214.99 by the end of the month.
As the second half of 2024 unfolds, share prices are predicted to maintain their upward trajectory. By December, the expected share price range for EPL is anticipated to extend from ₹205.32 to ₹236.12. These trends hold promising prospects for EPL’s investors, particularly from July to December when share prices are projected to be notably higher than earlier in the year.
| When | Maximum Price | Minimum Price |
| January 2025 | ₹240.84 | ₹185.27 |
| February 2025 | ₹247.02 | ₹190.02 |
| March 2025 | ₹256.65 | ₹197.43 |
| April 2025 | ₹251.62 | ₹193.55 |
| May 2025 | ₹244.29 | ₹187.92 |
| June 2025 | ₹255.29 | ₹196.37 |
| July 2025 | ₹250.28 | ₹192.52 |
| August 2025 | ₹258.02 | ₹198.48 |
| September 2025 | ₹267.05 | ₹205.42 |
| October 2025 | ₹273.99 | ₹210.77 |
| November 2025 | ₹280.84 | ₹216.03 |
| December 2025 | ₹287.87 | ₹221.44 |
- Minimum Price (Expected EPL Share Price Target): ₹185.27 (in January) – ₹221.44 (in December)
- Maximum Price (Expected EPL Share Price Target): ₹240.84 (in January) – ₹287.87 (in December)
In the year 2025, EPL’s expected share prices are poised to experience a gradual yet consistent upward trajectory. EPL’s projected maximum share price for the year is expected to culminate at ₹287.87 in December 2025, marking a continuous ascent in the stock’s value. Conversely, the anticipated minimum share price for the same year is forecasted to be ₹185.27 in January 2025. This range between the maximum and minimum expected share prices indicates noticeable price fluctuations throughout the year. Nonetheless, the overall trend hints at favorable growth potential for investors as the year unfolds. It’s imperative to conduct a thorough analysis and take various factors into account when making investment decisions.
| Year | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| 2026 | ₹302.26 | ₹211.58 |
| 2027 | ₹332.49 | ₹232.74 |
| 2028 | ₹465.48 | ₹232.74 |
| 2029 | ₹403.01 | ₹201.51 |
| 2030 | ₹523.92 | ₹366.74 |
- 2026: EPL Share prices ranged from ₹211.58 to ₹302.26, indicating notable price growth.
- 2027: Prices expanded from ₹232.74 to ₹332.49, showcasing a significant upward trend.
- 2028: The year experienced substantial growth, with prices spanning from ₹232.74 (minimum) to ₹465.48 (maximum).
- 2029: Prices fluctuated from ₹201.51 to ₹403.01, reflecting significant price movement.
- 2030: EPL Share prices displayed remarkable volatility, ranging from ₹366.74 (minimum) to ₹523.92 (maximum), showcasing notable fluctuations.
In short, EPL’s expected share prices are likely to rise steadily from 2026 to 2030.
The highest prices could reach ₹523.92 by 2030, and even the lowest prices are expected to increase, reaching ₹366.74 in the same year. This ongoing trend suggests a positive and potentially profitable investment opportunity over these five years. However, it’s essential for investors to carefully consider all relevant factors and conduct thorough analyses before making investment decisions.
EPL Ltd. Financial Condition (Last 5 Years)
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
| Sales + (Crore Rs.) |
2,707 | 2,761 | 3,092 | 3,433 | 3,694 |
| Expenses + (Crore Rs.) |
2,208 | 2,204 | 2,481 | 2,864 | 3,119 |
| Operating Profit (Crore Rs.) |
499 | 558 | 611 | 569 | 575 |
| OPM % | 18% | 20% | 20% | 17% | 16% |
| Other Income + (Crore Rs.) |
37 | 3 | -2 | 11 | 41 |
| Interest (Crore Rs.) |
61 | 56 | 43 | 40 | 67 |
| Depreciation (Crore Rs.) |
186 | 230 | 235 | 251 | 280 |
| Profit before tax (Crore Rs.) |
289 | 275 | 331 | 289 | 268 |
| Tax % | 32% | 23% | 26% | 23% | 14% |
| Net Profit + (Crore Rs.) |
195 | 212 | 244 | 221 | 231 |
| EPS in Rs | 6.11 | 6.57 | 7.58 | 6.79 | 7.12 |
| Dividend Payout % | 20% | 50% | 54% | 63% | 60% |
- Sales: EPL’s sales have demonstrated consistent growth, climbing from ₹2,707 in March 2019 to ₹3,694 in March 2023. This showcases a favorable trend in the company’s revenue generation.
- Expenses: Operating expenses for EPL have also expanded during this period, rising from ₹2,208 in March 2019 to ₹3,119 in March 2023. This aligns with the company’s growth, although it’s crucial to manage and control expenses effectively.
- Operating Profit Margin (OPM): EPL has maintained a relatively stable operating profit margin, with fluctuations between 16% and 20%. This underscores the company’s ability to sustain profitability despite the increase in expenses.
- Other Income: Other income for EPL has displayed some variability, with a dip in March 2021, but rebounded to ₹41 in March 2023. This income can originate from various sources, including investments or non-operating activities.
- Profit Before Tax: EPL’s profit before tax has experienced fluctuations, with a peak in March 2021. The company should strive to consistently maintain or enhance profitability.
- Tax Percentage: The tax percentage has remained relatively stable and even decreased to 14% in March 2023. Lower tax rates can have a positive impact on net profits.
- Net Profit: EPL’s net profit has risen from ₹195 in March 2019 to ₹231 in March 2023, indicating a favorable trend in the company’s profit generation.
- Earnings Per Share (EPS): Earnings per share for EPL have also increased from ₹6.11 in March 2019 to ₹7.12 in March 2023, reflecting the growth in earnings available to EPL shareholders.
- Dividend Payout: The dividend payout percentage has increased over the years, highlighting EPL’s commitment to distributing profits to its shareholder.
FAQs
What Is the Market Value of EPL?
As of November 22, 2023, the market capitalization of EPL Limited stands at ₹6,430 Crores
The current share price of EPL is ₹202 (November 22, 2023)
EPL’s target share prices for the year 2025 show a consistent upward trend, starting from ₹185.27 in January and reaching ₹221.44 in December.
EPL’s target share prices for the year 2030 range from ₹201.51 (minimum) to ₹523.92 (maximum).
Should One Invest In EPL Ltd?
EPL Ltd. has experienced revenue and profit growth, effectively managing expenses, and maintaining a consistent operating profit margin. The decrease in tax percentage and the increase in earnings per share are positive indicators. However, the company should keep an eye on controlling expenses and sustaining profitability over time.
EPL Limited presents several compelling factors for potential investors. Firstly, the company has maintained a robust EBITDA margin of 17.9%, reflecting efficient cost management and profitability in its operations. This indicates a healthy financial foundation for the company, which can be an attractive feature for those considering an investment.
In addition to the strong margin, EPL has achieved significant year-on-year (YoY) EBITDA growth of 29.6%. This growth demonstrates the company’s ability to generate higher earnings from its operational activities, suggesting a positive trajectory for profitability.
Furthermore, the company has consistently offered a healthy dividend payout of 59.3%. This aspect can be particularly appealing for investors seeking regular income from their investments.
One concern is the company’s relatively poor sales growth, which stands at 8.79% over the past five years. This might indicate a challenge in expanding its revenue base and calls for a closer examination of the company’s growth strategies.
Moreover, while a low tax rate can be advantageous for profitability, the company’s tax rate seems notably low. Investors should delve into the reasons behind this low rate to ensure compliance with tax regulations and assess potential risks.
Lastly, EPL’s low return on equity (ROE) stands at 11.9%. This ROE figure covers the last three years. It suggests that the company might not be maximizing returns for its shareholders. Evaluating investment opportunities should take this critical aspect into account.
In summary, EPL Limited exhibits strengths in its financial indicators, including a strong EBITDA margin and growth, as well as a healthy dividend payout. However, the company’s low sales growth, and low ROE raise considerations for potential investors. It is essential to conduct thorough research, considering your investment goals, risk tolerance, and the company’s long-term prospects before making an investment decision.
What did we learn?
