Motilal Oswal Places Buy On Midcap Stock, Scrip Set To Trade Rs 2.15/Share Ex-Dividend On August 04

Leading brokerage firm Motilal Oswal Financial Services initiated a Buy recommendation on EPL Limited (EPLL) with a target price of Rs 270 per share. The brokerage firm sees a 23% potential upside in the share price of EPLL if the stock is purchased at the current market price.

Stock has recently, on July 10, 2023, fixed the record date as Friday, August 04, 2023. for the Rs 2.15/share final dividend.

EPLL is a packaging sector midcap company. The market cap of the company is Rs 6,992.66 Crore.

Final Dividend of Rs 2.15/Share

In an exchange filing the board of directors of EPL Ltd. Said, "With reference to the captioned subject and pursuant to SEBI LODR and applicable statutory provisions, this is to inform you that the record date shall be 4 August 2023 to determine the shareholders entitled for final dividend of Rs. 2.15 per equity share of face value of Rs. 2 each, if approved at the ensuing Annual General Meeting ("AGM") of the members of the Company. The said Record date will be in respect to equity shares of the Company held in electronic/demat form and also in physical form."

It added, "The dividend of Rs. 2.15 per equity share of Rs. 2 each, as recommended by the Board, if approved at the AGM, will be paid by way of direct credit or dispatch of warrants/demand drafts on or around 14 August 2023 to those who are members as on relevant date or record date."

Views & Valuation

Motilal Oswal Financial Services said, "We expect margins to recover, driven by demand revival from EAP/Europe, softening raw material prices, and price hikes taken by the company across geographies over the past few quarters."

EPLL's earnings momentum is expected to further improve, driven by: 1) strong focus on sustainable tubes, leading to competitive advantage and market share gains 2) incremental contribution from the Brazil facility 3) a growing revenue contribution from the B&C and Pharma segments, 4) a gradual shift to laminated tubes from aluminum tubes and rigid packaging, 5) customer additions across geographies, coupled with greater cross-selling opportunities.

It added, "We expect a revenue/EBITDA/PAT CAGR of 12%/26%/33% over FY23-25 and value the stock at 21x FY25E EPS to arrive at a TP of INR270. We retain our BUY rating on the stock."

Stock Outlook

The share price of EPLL on BSE is Rs 219.75 per share with an intraday high and low of Rs 222.70 and Rs 218, respectively. Its 52-week high is Rs 227.35 per share and 52-week low is Rs 147.05 per share, respectively.

The stock surged 7.64% in 1 month. It jumped 35.52% in 3 months and 34.44% in 6 months, respectively. It has given 23.18% return in 1 year, 15.57% in 3 years, and 97.% in 5 years, respectively.

Disclaimer - The stock has been picked from the brokerage report of Motilal Oswal Financial Services. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.