EPL Ltd for 60% gains; best ever quarter resultsDate: 11Nov’24
Symbol: EPL
Timeframe: Daily
EPL (formerly known as Essel Propack Ltd) seems to be in Wave III of 3 which could extend to 400 levels (60% from current price of 250) as seen in the chart. Possible wave counts have been marked which will have to be reviewed as the move develops. EPL has posted best ever quarter sales and profits in Q2 today so a big jump may be seen tomorrow, 12 Nov’24.
This is not a trade recommendation. Please do your own analysis. And I have the right to be wrong.
HINGLISH VERSION
Aisa lagta hai ki EPL (pehle jiska naam Essel Propack tha) 3 ki Wave III mein hai jo 400 ke star (250 ki vartamaan keemat se 60%) tak badh sakta hai jaisa ki chart mein dekh sakte hain. Sambhavit Wave numbering ko chihnit kar liya gaya hai jiski sameeksha chaal vikasit hone par kee jaegee. EPL ne aaj Q2FY25 mein ab tak ki sabase achchhee quarterly sales aur profit darj kiya hai, isliye kal, 12 Nov’24 ko ek bada uchhaal dekha ja sakta hai.
Yah koi trade lene ya invest karne ki salaah nahi hai. Kripya apana vishleshan khud karein. Aur mujhe galat hone ka adhikaar hai.
Packaging
EPL-Do not miss this consolidation breakout!Essel Propack Ltd(EPL) is sector leader stock among packaging sector and looks like a breakout of triangular consolidation is done.
We can expect a quick move above 240 but today, stock has shown good volumes as well.
This is a relatively slow stock and hence, can test your patience.
But, the risk reward is very good and stock provides a dividend yield of around 2% at CMP.
Positional traders should keep this stock in watchlist.
RSI DivergenceBOPP and BOPET prices have bottomed out and also Asceptic and Flexible packaging sales are at ATH...
its Enterprise value is as follows
Year FY 23-24
Sales 15,000
EBITDA Margin 13.5%
EBITDA 2,025
EV/E multiple 4
Market Cap 8,100
Debt 4,462
Enterprise value (EV) 3,638
No of Shares 7.2
Target price 504
Current Price 341
Potential gain 47.76%
Packaging sector is deeply undervaluedWhen FMCG, pharma etc stocks are trading @50 times their current earnings and 10 times their current Market cap...
How can their suppliers from packaging industry stocks trade @just 3 times their current earnings and 0.5 to 1 times their current market cap ??
1. Hubli plant has commenced operation in this quarter which will boost topline growth
2. Good domestic demand (uflex serves 49% of domestic market)
3. During interview management has given 17% EBITDA guidance for Q3 if crude stays around 80$ range (Q2 EBITDA was 12%)
4. Debt of Rs 500 Cr will be repaid every quarter (current debt - 3000cr)
5. RSI Oversold, 1 week timeframe MACD support
ESTER |Ready for Next Leap of 50% after 10 Month Consolidation NSE:ESTER
10 Month Long Consolidation in range of 125-150 since April 2021.
Double Bottom (Bullish Pattern) at 50% Fibonacci Retracement of previous swing high.
Taking Support on 50Week SMA & Bouncing Back. Long Wicks Formation means Sellers unable to bring the stock down.
Accumulate b/w 136 - 120 as Stock will gain more strength above 140
Targets : 162 - 180 - 200 - 232
SL : 110
Golden Cross Over
Positive RSI Divergence in Weekly
Monthly RSI >60
Mold-Tek Packaging - Wonderful Investment OpportunityMold-Tek Packaging is engaged in the manufacturing of injection-molded containers for lubes, paints, food and other products.
Innovation and Value Addition:
In the early 1990s Mold-Tek pioneered the concept of plastic pails for paints industry, It has introduced plastic containers for lubes industry with value added features like ‘pull-up spout’ and tamper & leak free features. Mold-Tek was also granted a patent for the innovation related to pull-up spout with tamper proof seal. Mold-Tek designed and developed the containers for Mondelez’s Lickables product becoming its exclusive supplier in India. There are multiple products under development such as QR code enabled IML containers, plastic containers for fertilizers & pesticide industry, tamper proof plastic containers for home delivery companies like Swiggy/Zomato etc.
In-house capabilities:
Mold-Tek is only company in India that has in-house tool room, moulds, robotic operations, and labels. Further, in-house mould making capabilities also help with faster product development and market introductions. These capabilities are of special importance in IML which requires a high degree of reliance on automation including robots.
Strong Customer Relationships:
Mold-Tek has a proven track record of quality and reliability of supply which has helped it become one of preferred suppliers for leading companies in Paints, Lubes and Food & FMCG industries. Mold-Tek is amongst the few companies which has got a ‘green channel clearance’ from Asian Paints i.e., pails supplied by Mold-Tek go straight to the filling line without quality checks.
Key customers in Food, FMCG & Pharma includes ITC, HUL, P&G, Cadbury, Pepsi, Dabur, Parle, Nestle, Amul, Britannia, P&G, Haldirams, Britannia, MTR, Quality Walls, Emami etc. Paint Industry includes Asian Paints, Berger Paints, Nerolac, AczoNobel, Apollo Paints etc. Lubricant & Grease Industry includes Shell, Castrol, Bharat Petroleum, Indian Oil, HP, Reliance, bp, Valvoline, Gulf etc. Not just this, you name any good brand name and this company is the supplier.
FUNDAMENTALS:
> It is a Small Cap company with a market cap of just Rs.1,940 Cr. The company have grown significantly over last few years.
> The ROCE and ROE is at 22.5% and 22% respectively which is very good considering the size of the company.
> Price to Book Value ratio is 8.06 which means the company valuations are 8 times it’s book value.
> Stock P/E is 33 which makes the valuation a little costlier as compared to the industry P/E at 25.
> OPM of the company is continuously growing and it is at 22% as per Mar 21 Balance Sheet.
> Robust Topline and Bottomline, continuously increasing on YoY basis.
> Debts: The company have Debts of only Rs.108 Cr as per Mar 21 Balance Sheet which is much within the limit as compared to its Reserves.
> Reserves: It is Rs. 227 Cr as per Mar 21 Balance Sheet, more than twice as much of it’s borrowings. Continuously increasing since last 6 years.
> Promoters have reduced their stake slightly in Sep 21 Qtr to 33.73% from 35.13% in Jun 21 Qtr.
> FIIs & DIIs are also heavily invested in the company, combined holding will be more than 25%, DIIs are continuously increasing their stake in the company.
> The company enjoys more than 25% market share of packaging materials in India, this is substantial.
TECHNICALS:
> The stock has given almost V Shape recovery after the covid fall, this kind of recovery is not very usual. This shows the stock strength.
> On the chart stock is continuously in UPTREND since March 2020 Covid fall.
> Increasing Long Volume towers as indicated by blue arrows at the bottom indicates that lot of accumulation is going on in the stock continuously.
> Trading above 100 and 200 DMAs this talks about the strength in the bull run of this stock.
Company have strong financials and numbers are continuously increasing on YoY basis specially after the Covid slowdown. The company is investing heavily in R&D to add more products to its portfolio, building QR Code based packaging. Almost all renowned product based companies are its clients. The company have great client base.
Fresh Buy – At 688
Old Buy – Hold
Target – 3X i.e. 2050
Risk Management Tip: Never invest more than 5% of your capital in any single stock.
Your likes and comments motivate us to bring more profitable studies like this.
Happy Investing!
ShareMktSchool
BORO ltd - low risk high reward🍁 boro ltd 🍁
buy @ 181
strict sl 178(risk 3 points)
trgt 195-205-218-254
jackpot (just risk 3 points may be get huge reward)✨✨
just study ,if u r ready to risk 3 points just enter.
lets wait
it's a multibagger one in my view(only my view)
💠forming descending triangle
💠180-79 range acting as a major support and if it fall below that level just exit okay,otherwise hold
💠superb q3 published.
maybe it hit my sl but no matter because i am ready to take that risk of 3 point
like🔰comment🔰support