EPL Q1 Results Review - Investment In Sustainable Tubes Drives Market Share Win: ICICI Securities

ICICI Securities Report

EPL Ltd. Q1 FY25 print had multiple positive trends:

1. Market share win in oral care segment, which has been stable for few years, driven by sustainable tubes.

2. Pricing reduction at tail-end with revenue growth reflecting underlying performance.

3. More customers added in Brazil, which will likely help Americas to sustain high growth rate.

4. Europe margin showing smart improvement.

Finally, EPL has started delivering consistent performance with broad-based double-digit revenue growth and Ebitda close to guidance of 20%. The only miss was slower-than-expected revenue growth in the personal care segment.

We tweak our earning per share estimates by ~1% for FY25/FY26. However, our target price increases to Rs 275 (earlier Rs 225), as we raise our FY26E price to earning multiple to 22 times (from 18 times). Maintain 'Buy'.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.