Dear All,
Forwarding you the Event Update on Essel Propack
Essel Propack consolidates its US operations
Essel Propack (EPP), one of the leading global packaging solution providers has announced consolidation of its manufacturing facility in US. EPP has two facilities in Virginia, US, one pertaining to laminated tube and other for plastic tube. Post consolidation, operation of both the facilities would be brought under one roof.
We believe this kind of consolidation would go long way in helping EPP reducing its cost and improve its margin. At Rs51, the stock trades at 0.8x FY2012E EV/Sales and 0.9x FY2012E P/BV. We expect EPP to ramp up operations going ahead. We maintain our Accumulate view on the stock, with a Target Price of Rs58.
| Y/E Mar (Rs cr) | CY2008 | FY2010* | FY2011E | FY2012E |
| Net Sales | 1,291 | 1,682 | 1,401 | 1,544 |
| % chg | 8.2 | 30.3 | (16.7) | 10.2 |
| Adj Net Profit | (88.3) | 59.9 | 53.6 | 116.8 |
| % chg | - | - | (10.5) | 118.0 |
| EBITDA Margin (%) | 13.9 | 17.2 | 17.4 | 19.2 |
| EPS (Rs) | - | 3.8 | 3.4 | 7.5 |
| P/E (x) | - | 13.4 | 14.9 | 6.9 |
| P/BV (x) | 1.1 | 1.1 | 1.0 | 0.9 |
| RoE (%) | - | 8.2 | 6.8 | 13.6 |
| RoCE (%) | 4.1 | 9.3 | 8.9 | 12.9 |
| EV/Sales (x) | 1.3 | 0.9 | 1.0 | 0.8 |
| EV/EBITDA (x) | 9.5 | 5.2 | 5.6 | 4.0 |
*15 month period
If you have any further queries, feel free to call us on 022 39357600, Extn: 6864 / 6865 or mail us at advisory@angelbroking.com
With best regards,
Fundamental Advisory Desk
Angel Broking
Akruti Star,6th Floor, Road No.7,MIDC, Andheri (E),Mumbai – 93.
Call : (91) (022) 39357600 Ext. 6864,6865
Website : www.angelbroking.com
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