Review

ESSEL PROPACK

Ticker : 500135
FV : Rs 2
52-Week H/L : Rs 203.60/78.85

We had previously recommended Essel Propack in volume 36, issue no. 28 (dated May 4, 2020), when the stock was trading at Rs 179.70. Essel Propack Limited (EPL) is a producer of plastic packaging material in the form of multilayer collapsible tubes & laminates, used primarily for the packaging of toothpaste, personal care, cosmetics, pharmaceuticals, household and industrial products. In Q4FY20, the company's total income decreased by 1.89 per cent to Rs 689.62 crore from Rs 702.94 crore in Q4FY19. PBT for Q4FY20 stood at Rs 69.66 crore, a decrease of 11.28 per cent as compared to Rs 78.52 crore in Q4FY19. In Q4FY20, the net profit decreased by 6.21 per cent to Rs 49.95 crore as against Rs 53.26 gained in Q4FY19. The company’s revenue growth for Q4FY20 was impacted due to COVID-19, despite which, a strong growth in Europe was seen. Hence, we recommend a HOLD.