EPL Hits Fresh 52-Week High and Records Highest Volume Ever After Strong Q1 Performance

On Wednesday, the Indian stock markets exhibited a positive bias, trading within a narrow range. Among the stocks making headlines was EPL Ltd., which witnessed an impressive double-digit rally. EPL shares surged nearly 12%, reaching a 52-week high of Rs 252.90 apiece on the NSE. This rally came on the back of the company’s strong financial performance in the first quarter of FY25, further accentuated by the highest trading volume the stock has seen since its listing.

Stellar Q1FY25 Performance Drives Rally

EPL Ltd.’s remarkable performance in the June 2024 quarter played a pivotal role in the stock’s significant rally. The company reported an 18.2% year-on-year (YoY) increase in net profit, which stood at Rs 64.2 crore, compared to Rs 54.3 crore in the same quarter last year. This substantial profit growth underlines the company’s ability to navigate challenges and capitalize on growth opportunities effectively.

The company also witnessed a healthy rise in revenue from operations, which grew by 10.7% YoY to Rs 1,007.4 crore in Q1FY25, up from Rs 910.2 crore in the corresponding quarter last year. This robust revenue growth is a testament to EPL’s strong market presence and effective business strategies.

Impressive Growth in EBITDA and Margins

EPL Ltd. also demonstrated solid growth in its earnings before interest, tax, depreciation, and amortisation (EBITDA). The company’s EBITDA surged by 20.81% in the first quarter, reaching Rs 192.1 crore, compared to Rs 159 crore in the year-ago period. This increase highlights the company’s operational efficiency and its ability to manage costs effectively.

The EBITDA margin stood at 19.1%, representing a significant expansion of 160 basis points from 17.5% in the previous year. This improvement in margins underscores EPL’s strategic focus on enhancing profitability through better cost management and operational efficiencies.

Regional Performance: Strong Growth Across Geographies

EPL Ltd. reported strong revenue growth across various regions, reflecting its diversified global presence. In the Africa, Middle East, and South Asia (AMESA) region, the company’s revenue from operations grew by 9.49% YoY to Rs 367.7 crore, compared to Rs 335.8 crore in the same period last year.

Similarly, the company recorded robust growth in other regions as well, with revenue increasing by 13.9% in the East Asia Pacific (EAP), 18.9% in the Americas, 9% in Europe, and 8.6% in India Standalone. This broad-based growth across geographies indicates the company’s strong global market position and its ability to capture opportunities in diverse markets.

B&C Segment: A Key Growth Driver

EPL Ltd. highlighted that the Beauty & Cosmetics (B&C) segment has been a significant growth driver, particularly in the EAP and Americas regions. This growth has been fueled by the company’s strong backend and front-end capabilities, enabling it to meet the increasing demand in these markets.

Moreover, EPL’s expansion into Brazil has gained significant momentum, with the company acquiring new customers, including two multinational corporations and one local customer. This expansion is expected to further strengthen EPL’s market position in the region.

Innovation and Future Prospects

Innovation remains at the core of EPL Ltd.’s growth strategy. The company has recently received commercial orders for its Neo-seam tubes across three regions, marking a significant milestone in its innovation journey. This development not only enhances EPL’s product portfolio but also positions the company as a leader in the tube packaging industry.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.