Essel Propack (EPL) is raising funds through issue of Commercial Papers (CPs) for Rs 25 crore on private placement basis.
Essel Propack (EPL) is raising funds through issue of Commercial Papers (CPs) for Rs 25 crore on private placement basis. The company will raise funds on November 16, 2017. The tenure will be for 90 days and interest will be payable on maturity. We believe this is positive for the company as it would help may help the company to refinance its debt or it may also aid it to finance its capex programme.
Essel Propack’ future growth will be driven by increasing share of laminated tubes for packaging in high value and high margin non-oral care - cosmetics, pharmaceuticals and food segments. EPL leveraging on its global presence, is well placed to grow its non-oral sales at a CAGR of 18% over FY17-19E; thereby increasing non-oral share in sales to 50% (at present 42%) by FY19-20. We believe increasing contribution of value added products and rise in profitability from Europe, EAP and America are key growth triggers for EPL. We expect PAT to grow at 29% CAGR (FY17-19E) led by favorable product mix and margin expansion. EPL currently trades at ~15xFY19P/E. We have positive outlook on the stock.
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