EPL Ltd (500135) – New Management & Business Growth

EPL Ltd  (500135)  closes   at ₹ 197.50 with  a   Fall   of   -1.00  %   on    on    17-Jan-2024 with formation of  a  Small Red  Candle    on Daily  Price Chart.

About the Company : EPL Limited (formerly known as Essel Propack Limited),is the largest specialty packaging global company, manufacturing laminated plastic tubes catering to the Beauty & Cosmetics, Pharma & Health, Food, Oral and Home.

The company was acquired by the Blackstone group on Aug – 2019 from the Essel group of companies. The Blackstone Group is one of the leading investment firms in the world with an AUM of around USD 511 billion across sectors like private equity, real estate, hedge fund solutions and credit businesses. The Group also has an exposure in the packaging industry through acquisition of varied companies such as the USA based Graham Packaging, Owens-Illinois Inc, Ohio and China based packaging firm ShyaHsin..

Sector Update :  Positive

Trendlyne Checklist Score : 47.8% Passed

Financials : EPL Ltd has posted Net Sales / Revenue   of ₹3694.10 Cr & Net Profit of   ₹2226.70 Cr in FY2023 and expected to post Net Sales / Revenue   of ₹3979.80 Cr & Net Profit of ₹230.30Cr in FY2024, Net Sales / Revenue   of ₹4393.70 Cr & Net Profit of ₹303.20 Cr in FY2025 ; Net Sales / Revenue   of ₹4851.50 Cr & Net Profit of ₹378.50 Cr in FY2026

Valuations  : The Company is now Trading at X 2.20 of its  valuations of  FY2023 earnings with ~120 %  premium  and at X1.97 of its FY2024 earnings with ~97%  premium, X1.49 of its FY2025 earnings with ~49 %  premium and X1.19 of its FY2026 earnings with ~19%  premium.

EPS  will  improve from  ₹ 7.1  in FY2023 to  ₹ 11.90  in FY2026.Net Profit Margin will  improve from 6.10%  in FY 2023 to 7.80% in FY2026, Debt will reduce from ₹768.60Cr to ₹ 518.30Cr and New Worth will improve from ₹1992.80 Cr to ₹ 2327.50 Cr during the same period.

Early Trend : Grwoth in Personal Care Products.

MF/FII : Mutual Fund – 12.42%. FII – 10.41 %

Margin of Safety (1Yr Bond Yield: Value>1 ) is now  0.40   which  makes is Mild .The  Equity Value Per Share ( Enterprise Value Method ) is  ₹190.00

If We factor its FY2026 earnings/valuations, its Price arrives at ₹365.20

 

Disclaimer : We are / may going to take exposure shortly.

Join Us at   Telegram #   https://t.me/TheNiftyNext

Data Source | NSE Website | Screener.In  | Capital Line | Money Control |Refinitiv |

The author tracks economic, behavioural and corporate tends, hoping to gauge good avenues of return based on Fundamental Valuations of Stocks, a follower of EPV method. You can reach me/us at | Twitter # NiftyNext1 |  e-Mail : Mail@NiftyNext.Com  |  Tel +91 8802230836  |  Telegram # TheNiftyNext  Manage your investments the right way With MProfit. Visit https://www.mprofit.inUse Our Referral Link to Get 20% DISCOUNT @ https://www.mprofit.in/buy?referral=R1GD99J496AB1345D

Hazoor Multi Projects Ltd (532467) – Discounted Infra Stock

Hazoor Multi Projects Ltd  (532467) closes   at ₹ 257.85 with  a   Gain  of   +5.00  %   on    on    08-December-2023 with formation of  a  Star  Candle    on Daily  Price Chart.

About the Company :  Incorporated in 1992, Hazoor Multi Projects Limited is engaged in the business of Infrastructure and Real Estate. n FY21, company changed its line of business and is now mainly engaged in infrastructural development and works as a sub-contractor in executing various national highway road projects awarded by government authorities such as Maharashtra State Road Development Corporation Ltd and National Highways Authority of India. Apart from this, company has also started the EPC contracting business.

Sector Update :  Positive

Trendlyne Checklist Score : 69.90% Passed

Financials : Hazoor Multi Projects Ltd  has posted Net Sales / Revenue   of ₹113.00 Cr & Net Profit of   ₹2.00 Cr in FY2022, Net Sales / Revenue   of ₹776.00 Cr & Net Profit of   ₹46.00 Cr in FY2023 and expected to post Net Sales / Revenue   of ₹658.00 Cr & Net Profit of ₹64.00 Cr in FY2024  .

Valuations  : The Company is now Trading at X 0.60  of its  valuations of  FY2023 earnings with ~40 % and at X0.44 of its FY2024 earnings with ~56%  Discount.

EPS  will  improve from  ₹ 46  in FY2023 to  ₹ 64  in FY2024.Net Margin has improved from 2.21 5 in FY 2022 to 5.88 in FY2023, Free Cash Flow from  ₹ 17.20 Cr to  ₹ 81.60 Cr , Net Debt from  ₹11.10 Cr to  ₹15.40 ₹, Rod improved from 10.5% to 85.90%, RoA from 4.75 to 24% during the same period.

In November 2023, Hazoor Multi Projects bagged orders worth Rs 11.3 billion (bn) to upgrade and rehabilitate a section of NH-66 in Ratnagiri. The work was given to Hazoor Infra Projects (a wholly owned subsidiary company). The estimated value of the project is Rs 11.3 bn divided with annuities at Rs 5.2 bn, interest on annuities at Rs 4.6 bn, and operation and maintenance costs at Rs 1.4 bn.

Company is Growing +13.00 % and it’s Payback Ratio (  Prefer < 1 :  MultiBagger Finder ) is 0.8, as per our valuations.

Early Trend : Infrastructure booms (Rail/road/Housing etc will create moat for it )

MF/FII : Mutual Fund – 0%. FII – 5.90%Margin of Safety (1Yr Bond Yield: Value>1 ) is now  1.80   which  makes is attractive.The  Equity Value Per Share ( Enterprise Value Method ) is  ₹254.90

If We factor its FY2024 earnings/valuations, its Price arrives at ₹590.00

 

Disclaimer : We are / may going to take exposure shortly.

Join Us at   Telegram #   https://t.me/TheNiftyNext

Data Source | NSE Website | Screener.In  | Capital Line | Money Control |Refinitiv |

The author tracks economic, behavioural and corporate tends, hoping to gauge good avenues of return based on Fundamental Valuations of Stocks, a follower of EPV method. You can reach me/us at | Twitter # NiftyNext1 |  e-Mail : Mail@NiftyNext.Com  |  Tel +91 8802230836  |  Telegram # TheNiftyNext  Manage your investments the right way With MProfit. Visit https://www.mprofit.inUse Our Referral Link to Get 20% DISCOUNT @ https://www.mprofit.in/buy?referral=R1GD99J496AB1345D

Mallcom (India) Ltd (539400)- Infra & Safety Player

Mallcom (India) Ltd (539400) closes   at ₹1040.45  with  a   Gain   of   +0.10%   on    15-Sep-2023  with formation of  a    Small Red  candle  on Daily  Price Chart.

About the Company : Established in 1983, Mallcom (India) Ltd. is an ISO certified and government-registered star trading house. The company is in the business of manufacturing Personal Protective Equipment and Industrial Safety products.

Sector Update :  Positive

Trendlyne Checklist Score : 45.5% Passed

Financials : Mallcom (India) Ltd has posted Net Sales / Revenue   of ₹410.60 Cr & Net Profit of   ₹36.90 Cr in FY2023 and expected to post Net Sales / Revenue   of ₹453.00 Cr  & Net Profit of ₹39.50 Cr in FY2024, Net Sales / Revenue   of ₹521.40 Cr  & Net Profit of ₹46.40 in FY2025 and Net Sales / Revenue   of ₹600.70 Cr  & Net Profit of ₹58.90 Cr in FY2026.

Valuations  : The Company is now Trading at X1.60  of its  valuations of  FY2023 (Last 4 Quarters ) earnings with ~60% Premium  ;  at X1.26 of its FY2024 earnings with ~26%  Premium ; at 1.18 of its FY2025 earnings with ~18%  Premium and at X1.00 of its FY2026 earnings (Fairly Valued).

Company will increase  its Networth  of ₹203.20 Cr in FY 2023 to ₹342.40 Cr by FY 2026 along with Reduction in Debt from ₹90.70 to ₹63.30 Cr  and EPS will also improve from 59.19 to 94.34 during the same period.

 

Company is Growing +18.9% and it’s a growth candidate, as per our valuations. The growth candidate value is 1.1 ( Benchmark >1) and Growth Advantage Period ( GAP) [ >1 GAP Yes : <1 GAP No ] is 1.33

Early Trend : Infrastructure booms (Rail/road/Housing etc will create moat for it )

MF/FII : Mutual Fund – 0%. FII – 0.06%

Margin of Safety (1Yr Bond Yield: Value>1 ) is now  0.60  which  makes it a concern due to large capedx plan during 2023-2025.The  Equity Value Per Share ( Enterprise Value Method ) is  ₹967 . It’s a Growth Stock as per our calculations , Growth Candidate ( If >1 ) is 1.10 . If We factor its FY2026 earnings/valuations, relative to current valuations,  its Price arrives at ₹2109.00

Disclaimer : We are / may going to take exposure shortly.

Join Us at   Telegram #   https://t.me/TheNiftyNext

Data Source | NSE Website | Screener.In  | Capital Line | Money Control |Refinitiv |Trendlyne |

The author tracks economic, behavioural and corporate tends, hoping to gauge good avenues of return based on Fundamental Valuations of Stocks, a follower of EPV method. You can reach me/us at | Twitter # NiftyNext1 |  e-Mail : Mail@NiftyNext.Com  |  Tel +91 8802230836  |  Telegram # TheNiftyNext  Manage your investments the right way With MProfit. Visit https://www.mprofit.inUse Our Referral Link to Get 20% DISCOUNT @ https://www.mprofit.in/buy?referral=R1GD99J496AB1345D