JM Financial has maintained its Buy rating on Epack Durable from its earlier target price of Rs 540 per share to Rs 480 per share. In this article, we will try to understand the rationale behind this uptick.
With a market capitalization of Rs 3,390 crore, the shares of Epack Durable Ltd are currently trading at Rs 353 per share, down by 47.30 percent from its 52-week high of Rs 669.95 per share. In the last year, the stock has delivered a return of 63.45 percent.
Brokerage Rationale
JM Financial stated that the company delivered a solid Q4, with fourth quarter PAT growth of 36 percent YoY, outperforming estimates. The partnership with Hisense will be a major growth catalyst, as they have started ODM production, with OEM production likely expected by 3Q/4QFY26.
Furthermore, the company expects to spend Rs 450–500 crore in capex over the next 12–18 months, primarily in Sri City, to grow capacity. These are the major reasons why JM Financial sees a 36 percent upside from its current level and has a BUY with a target price of Rs 480.
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Financial Highlights
The company reported a revenue growth of 53 percent to Rs 2,171 crores in FY25 from Rs 1,420 crores in FY24. Coming to its profitability, it reported a net profit growth of 57 percent to Rs 55 crores in FY25 from Rs 35 crores in FY24. The stock has delivered an ROE and ROCE of 6 percent and 9.70 percent, and is currently trading at a P/E of 64.4x as compared to its industry average of 51.39x.
EPACK Durable Limited is an original design manufacturer of room air conditioners as well as home appliances. It manufactures window and split inverter ACs along with indoor and outdoor units, and small domestic appliances such as induction cookers, mixers and grinders, and water dispensers.
The company has component-level manufacturing, which includes heat exchangers, fans, PCB assemblies, and plastic mouldings, along with the manufacture of appliances. The company exports internationally as well.
Written by Satyajeet Mukherjee
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