EMS stock which is one of the leading Original Design Manufacturers (ODM) of room air conditioners for players like Blue Star, Daikin, and many others jumps upto 3 percent in the day’s trade upon entering into an arrangement for manufacturing with Panasonic Life Solutions India.
Price Action
With a market capitalization of Rs. 3,833 Crores, the shares of EPACK Durables Limited were trading at Rs. 399 per equity share, down 5 percent from its previous day’s close price of Rs. 419.85.
What Happened
EPACK Durables Limited one of the leading Original Design Manufacturers (ODM) of room air conditioners has entered into an arrangement for manufacturing tie-up with Panasonic Life Solutions India Private Limited.
Under this arrangement, EPACK Durables Limited will act as an EMS (Electronic manufacturing service provider) for the manufacturing of Printed Circuit Board Assembly (PCBA) Controllers and high-tech critical components namely, Heat Exchangers, Cross flow fans, Propeller fans, sheet metal parts, and others for Room Air Conditioners for Panasonic.
EPACK Durables Limited forays into the EMS business following the supply arrangement from Panasonic. The advanced manufacturing facilities of EPACK at Bhiwadi (Rajasthan) & Sricity will be the epicenter of this business, leveraging its established expertise to enhance capacity utilization to optimum levels and set new standards in manufacturing excellence.
PLI Scheme
The Components to be manufactured for Panasonic fall within the ambit of the Production Linked Incentive scheme of Govt. of India for which EPACK Durables Limited is also a beneficiary providing financial and other incentives to increase their production capacities, scale, and efficiency.
About the Company
EPACK Durables Limited is one of the leading Original Design Manufacturers (ODM) of room air conditioners, it manufactures components such as sheet metal parts, injection moulded parts, cross-flow fans, and PCBA components that are actively used in the production of Room Air Conditioners (RAC’s) and other domestic appliances like cooktops, mixer-grinders, water dispensers, and many others.
EPACK Durables Limited has a strong customer base with well-known players like Blue Star Limited, Daikin Air-conditioning India Private Limited, Carrier Midea India Private Limited, Voltas Limited, Havells India Limited, Haier Appliances (India) Private Limited, Godrej and Boyce Manufacturing Company Limited, Bajaj Electricals Limited, and Usha International Limited, and many others.
Financials and Ratios
Its Revenue from operations grew by 77 percent from Rs. 437 Crores in Q1FY24 to Rs. 774 Crores in Q1FY25, accompanied by profits of Rs. 9 Crores to Rs. 23 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 5.85 percent, and a return on capital employed (ROCE) of 8.32 percent. It has reported a debt-to-equity ratio of 0.43.
Written by: Bharath K.S
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