India's EPL: "Light at the end of the tunnel," says Motilal Oswal

EPL

12/04/2023 08:02

** Packaging co EPL  EPLI.NS  to post double-digit profit
growth in FY23-25 on demand recovery across geographies,
softening raw material prices - Motilal Oswal
    ** EPL shares flat on the day, down ~6% YTD. They fell
nearly 18% in last two years as results weakened
    ** EPL's rev growth stagnated at 11%-12% in past two years,
while profit fell for first time in 5 yrs in FY22 on
lockdown-led demand slowdown and high input costs
    ** But Motilal Oswal sees EPL's rev, profit CAGR of 12% and
34% over FY23-25
    ** Overall, analysts rev growth view is 8.2% for FY 23, ~25%
for FY24 and ~11% for FY 25; profit to drop ~10% again in FY23
and then rise 43.5% and 25.5% in next two FY, per Refinitiv IBES
    ** Motilal Oswal says East Asian and Pacific have healthy
demand and Americas cost situation is improving, though Europe
challenges remain
    ** Expects EPL's sequential recovery in margins to continue
on demand recovery, easing input costs and price hikes

 (Reporting by Ashish Chandra in Bengaluru)
 ((ashish.chandra@thomsonreuters.com (+91 7982114624))