Synopsis:
Nomura has recommended a “Buy” rating on EPL Limited with a target price of ₹350, suggesting an upside potential of 82.27 percent.
This Small-cap Plastic Stock, engaged in manufacturing and supplying specialty laminated plastic tubes, caps, closures, and dispensing systems primarily for FMCG, pharmaceutical, beauty, food, and home care sectors globally, is in focus after Nomura gave a target of Rs. 350, which has an upside potential of 83 percent.
With a market capitalization of Rs. 6,381.13 crore, the shares of EPL Limited were currently trading at Rs. 199.30 per equity share, rising nearly 4.02 percent from its previous day’s close price of Rs. 191.60.
What is the News?
Nomura, a prominent brokerage firm, has recommended a “Buy” call on EPL Limited with a target price of Rs. 350 per share, indicating an upside potential of 82.67 percent from its previous day’s close price of Rs. 191.60.
Rationale for Target
Nomura has kept its ‘buy’ rating on EPL after the company reported another strong quarter as guided. In Q2 FY26, the results were better than expected, mainly due to continued strong momentum in the Beauty & Cosmetics (B&C) segment, showing steady growth and improved performance.
Although the AMESA region and Oral Care segment were slightly affected by the GST transition, the overall outlook remains positive. EPL has maintained its guidance for double-digit sales growth and expects operating profit to grow faster than sales, indicating confidence in future performance and business stability.
Management Guidance
The company has confident guidance for the coming years. It aims to increase its ROCE from around 18 percent now to over 25 percent by FY2029, showing a strong focus on improving profitability and efficiency.
Along with this, the company has set a clear and ambitious plan to achieve double-digit revenue growth, reflecting its commitment to consistent expansion and value creation in the long term.
Company Overview
EPL Limited (formerly Essel Propack Limited) was established in 1982 and is headquartered in Mumbai, India. The company is the world’s largest manufacturer of laminated plastic tubes. The company specializes in specialty packaging primarily for the fast-moving consumer goods (FMCG), pharmaceutical, beauty, and food industries.
The company has a global presence with over 21 manufacturing facilities spread across Asia, Europe, North and South America. The company’s product range includes laminated tubes, plastic tubes, caps and closures, laminates, and other specialty packaging materials.
Recent quarter results
Coming into financial highlights, EPL Limited’s revenue has increased from Rs. 1,086 crore in Q1 FY25 to Rs. 1,206 crore in Q1 FY26, which has grown by 11.05 percent. The net profit has also grown by 20.45 percent from Rs. 88 crore in Q1 FY25 to Rs. 106 crore in Q1 FY26.
EPL Limited’s revenue and net profit have grown at a CAGR of 8.82 percent and 11.42 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 17.5 percent and 16.3 percent, respectively. EPL Limited has an earnings per share (EPS) of Rs. 12.9, and its debt-to-equity ratio is 0.34x.
Written By – Nikhil Naik
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