This Newly Listed Stock Surges 81.70 per cent YTD, Now Partners with Panasonic India!
This newly listed stock strengthens its position with a strategic partnership alongside Panasonic India, aiming for further expansion and industry leadership.
EPACK Durable Limited, a well-established player in the Indian air-conditioning sector, has made a significant move by entering the Electronic Manufacturing Services (EMS) space through a collaboration with Panasonic Life Solutions India Private Limited. This partnership involves EPACK manufacturing critical components for Room Air Conditioners (RACs), including advanced Printed Circuit Board Assembly (PCBA) controllers, marking a strategic shift in EPACK's business model.
Strategic Shift to EMS and Business Expansion
This collaboration positions EPACK as a key supplier of PCBA controllers and essential RAC components, such as heat exchangers, propeller fans, injection-molded parts, and copper parts for Panasonic. The move is expected to drive significant business growth by increasing EPACK’s turnover, as it taps into the surging demand for energy-efficient, inverter-based air conditioners in India. Panasonic Life Solutions India, with a total revenue of Rs 10,02,911 lakh for the FY 2022-23, provides EPACK with an immense opportunity to expand its market footprint by catering to a leading industry player.
Cutting-Edge Manufacturing Facilities
EPACK’s advanced manufacturing units in Bhiwadi (Rajasthan) and Sricity (Andhra Pradesh) will serve as the backbone of this production venture.The components produced under this arrangement fall under the Indian government's Production Linked Incentive (PLI) scheme, benefiting EPACK and further bolstering its growth potential in the market.
Rationale and Benefits of the Partnership
This arrangement with Panasonic signals a transformative leap for EPACK, transitioning from captive production to becoming a key EMS provider. The partnership is expected to significantly boost EPACK’s business growth by increasing turnover, while cementing its position as a leader in the Indian EMS sector for air conditioning components.
Stock Performance Since Listing:
On a year-to-date (YTD) basis, EPACK's stock has provided a return of 81.40 per cent to its investors. The company was listed in January 2024, and as of October 4, 2024, its current market capitalization stands at ₹3,857 crore. The company’s current price-to-earnings (P/E) ratio is 77, relative to the industry P/E of 112. EPACK has turned profitable in the last three quarters.