ESSELPACK - INVESTMENT IDEA (TARGET PRICE - 200)

8 พ.ค. 2020

ESSELPACK - INVESTMENT IDEA (TARGET PRICE - 200)

The company has maintained its growth trajectory and has charted out a strategic roadmap that besides helping sustain and boost growth, is also conducive to adapt to the changing needs of customers and business dynamics.

Moreover, post-Blackstone as the new controlling shareholder, the company is on mission to deliver capital efficient, consistent earnings growth. For this, it has revamped the board with fit-for-purpose professionals, strengthened the management team, and engaged Blackstone's global advisor network.

The company has identified key levers to execute its mission - accelerated growth in Personal Care, Continued leadership in Oral Care, Innovation and sustainability solutions and prudent capital allocation across regions.

In line with that, the management of the company is optimistic about Indian operations in the future and the margins looks sustainable. Thus, it is expected that the stock will see a price target of Rs.200 in 8 to 10 months time frame on an expected P/E of 23 and FY20 EPS of Rs.8.7.