EPL - Good Growth, Attractive Free Cash Flow Yield: ICICI Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Our conviction on EPL Ltd. is now more fervent. EPL is at the cusp of transition– in our view, a rerating is imminent. An emerging theme is EPL’s customers taking to reducing/reusing plastic wastes. EPL too, at this juncture, has transformed smartly to recyclable tubes, thus aligning with its customers. We do accede to the fact that the past two years have been choppy, but these were external factors that are largely behind. We expect EPL to grow Ebitda/net profit at compound annual growth rate of 15.9%/35.6% over FY24–27E while FCF generation springs by 2.3 times in FY27E and FCF yield (FY27E) is at an attractive 5.7% of its enterprise value. EPL’s global market share in laminate tubes is enviable at 35% in oral care and ~10% in personal care – headroom here exists. We raise target price to Rs 350 (from Rs 275.) stems from a 16.5% higher FY26E EPS; PE multiple revised to 24x FY26E (from 22 times). Retain Buy..Click on the attachment to read the full report:.VA Tech Wabag - A Watershed Moment: ICICI Securities.DISCLAIMERThis 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.

EPL - Good Growth, Attractive Free Cash Flow Yield: ICICI Securities

The brokerage maintains Buy rating on the stock and revises target price to Rs 350.

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EPL - Good Growth, Attractive Free Cash Flow Yield: ICICI Securities

The brokerage maintains Buy rating on the stock and revises target price to Rs 350.

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