Looking for the analysis of EPACK Durable share price targets for the years 2024, 2025, and 2030. In this analysis, we delve into the factors influencing the potential trajectory of EPACK Durable’s stock value, providing insights into the company’s performance, market trends, and growth prospects.
Join us as we examine key indicators, market dynamics, and projections to offer a detailed outlook on the future of EPACK Durable’s share price, guiding investors towards informed decisions in navigating the dynamic landscape of the stock market.
About EPACK Durable Ltd.
EPACK Durable Limited is a company specializing in the design and manufacture of room air conditioners (RAC) and small domestic appliances (SDAs).
Initially serving as an OEM (Original Equipment Manufacturer) for RAC brands, the company later transitioned into an ODM (Original Design Manufacturer) partner, producing essential components such as sheet metal, injection-molded parts, cross-flow fans, and PCBA components for RAC manufacturing.
In addition to air conditioners, EPACK Durable Limited is engaged in the production of induction cooktops, mixer grinders, and water dispensers within the small domestic appliances sector.
The company operates research and development centers in Greater Noida, Bhiwadi, and Dehradun, equipped with endurance test labs for RACs and SDAs, as well as specialized testing equipment such as induction coil-automatic voltage testers, induction coil-breakdown testers, needle flame testers, and customized glow wire testers.
The Managing Director of EPACK Durable Limited is Mr. Ajay DD Singhania.
EPACK Durable Ltd. Company Profile
| Category | Details |
|---|---|
| Company Name | EPACK Durable Ltd. |
| Industry | Consumer Durables |
| Products | Room Air Conditioners (RACs), Small Domestic Appliances (SDAs) |
| RAC Products | Indoor Units (IDUs), Outdoor Units (ODUs), Window Air Conditioners (WACs) |
| SDA Products | Induction Cooktops, Mixer Grinders, Water Dispensers |
| Additional Components | Heat Exchangers, PCBAs, Universal Motors, Copper Tubing, Sheet Metal, Plastic Molding, Cross-Flow Fans, Induction Coils, Copper Fabricated Parts, Axial Fans |
| Business Model | Design and Manufacturing (ODM for RACs, own brand for SDAs) |
| Listed on | BSE and NSE |
| Managing Director | Mr. Ajay DD Singhania |
| R&D Centers | Greater Noida, Bhiwadi, Dehradun |
| Testing Facilities | Endurance Test Labs for RACs and SDAs, Induction Coil Testers, Needle Flame Testers, Customized Glow Wire Testers |
EPACK Durable Ltd. Products
EPACK Durable Ltd.’s product categories, including:
Room Air Conditioners (RACs):
- Indoor Unit (IDU): This houses the evaporator coil, fan, and controls for the air conditioner.
- Outdoor Unit (ODU): This houses the compressor and condenser coil, responsible for removing heat from the refrigerant and releasing it to the outside.
- Window Air Conditioner (WAC): This is a self-contained unit combining the IDU and ODU in a single package, typically installed in a window.
Small Domestic Appliances (SDAs):
- Induction Cooktop: This uses electromagnetic induction to heat cookware directly, offering faster and more energy-efficient cooking than traditional methods.
- Mixer Grinder: This versatile appliance combines mixing and grinding functionalities in one unit, ideal for preparing various food items.
- Water Dispenser: This provides convenient access to clean and chilled drinking water.
Components:
- Heat Exchanger: This transfers heat between two fluids or gasses, crucial for both RACs and SDAs.
- PCBA: Printed Circuit Board Assembly, the brains of the appliance, containing electronic components and circuits that control its operation.
- Universal Motor: A versatile motor used in various appliances, including fans and mixers.
- Copper Tubing: Conducts refrigerant in RACs and carries electricity in some SDAs.
- Sheet Metal: Forms the outer casings of many appliances, providing structural support and protection.
- Plastic Molding: Used for creating various plastic parts for appliances.
- Cross-Flow Fan: This type of fan blows air across a surface perpendicular to the direction of the motor shaft, commonly used in heat exchangers and condensers.
- Induction Coil: Generates the electromagnetic field for heating in induction cooktops.
- Copper Fabricated: Custom-shaped copper components used in various applications.
- Axial Fans: These fans blow air in a straight line along the axis of the motor shaft, frequently used in cooling applications.
This information provides a comprehensive overview of EPACK Durable Ltd.’s diverse product range and the key components involved. Do you have any specific questions about these products or components, or would you like me to delve deeper into any particular aspect?
Predicting future stock prices with complete certainty is impossible, but we can analyze various factors to make informed predictions.
Potential EPACK Durable share price targets for 2024, 2025, and 2030, considering both risks and opportunities:
Current Situation:
- As of January 31, 2024, EPACK Durable’s share price is Rs. 212.55.
- Recent financial reports indicate mixed performance:
- Positives: High sales growth (65.88%), low debt-to-equity ratio (1.57), decent return on equity (14.65%).
- Negatives: High PE ratio (67.81), low operating margin (6.24%), poor return on assets (2.49), inefficient inventory management.
Factors Affecting Future Price:
- Market conditions: Overall market performance and investor sentiment can significantly impact individual stock prices.
- Company performance: Continued sales growth, improved profitability, and efficient operations can boost the stock price.
- Competitive landscape: Increased competition in the RAC and SDA markets could put downward pressure on prices.
- New product launches: Successful introductions of new air conditioner models or innovative SDAs could attract investors and raise the stock price.
- Government policies: Changes in regulations or subsidies affecting the consumer durables industry could impact the company’s performance and share price.
Analysts’ estimates vary, with some suggesting a conservative target of Rs. 350-380 and others predicting a more optimistic range of Rs. 390-420.
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Continued growth and improved profitability could lead to a target range of Rs. 440-520, though market factors and potential setbacks could bring it down to Rs. 380-400.
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Long-term forecasts are even more uncertain, but if EPACK Durable maintains its growth trajectory and successfully expands its market share, a target of Rs. 900-1100 or even higher could be possible. But, unforeseen challenges and economic fluctuations could also lead to lower targets.
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EPACK Durable Fundamentals
| Company | EPACK Durable Ltd. |
|---|---|
| Market Cap | ₹ 2,048.18 Cr. |
| Enterprise Value | ₹ 2,465.44 Cr. |
| No. of Shares | 9.58 Cr. |
| P/E | 67.14 |
| P/B | 1.86 |
| Face Value | ₹ 10 |
| Div. Yield | 0 % |
| Book Value (TTM) | ₹ 114.76 |
| Cash | ₹ 75.18 Cr. |
| Debt | ₹ 492.45 Cr. |
| EPS (TTM) | ₹ 3.18 |
| Sales Growth | 65.88% |
| ROE | 14.65% |
| ROCE | 11.20% |
| Profit Growth | 68.78% |
| PARTICULARS | MAR 2021 (Cr.) | MAR 2022 (Cr.) | MAR 2023 (Cr.) |
|---|---|---|---|
| Net Sales | 736.25 | 916.16 | 1,519.76 |
| Total Expenditure | 694.48 | 851.11 | 1,424.92 |
| Operating Profit | 41.77 | 65.05 | 94.84 |
| Other Income | 3.41 | 3.51 | 1.65 |
| Interest | 25.58 | 28.88 | 31.23 |
| Depreciation | 8.99 | 13.14 | 21.73 |
| Exceptional Items | 0 | 0 | -1.55 |
| Profit Before Tax | 10.61 | 26.54 | 41.99 |
| Tax | 3.07 | 8.47 | 11.48 |
| Net Profit | 7.54 | 18.08 | 30.51 |
| Adjusted EPS (Rs.) | 1.56 | 3.47 | 5.86 |
EPACK Durable Ltd. Balance Sheet
| EPACK Durable Ltd. | MAR 2021 (Crores) | MAR 2022 (Crores) | MAR 2023 (Crores) |
|---|---|---|---|
| Equity and Liabilities | |||
| Share Capital | 48.17 | 52.09 | 70.91 |
| Total Reserves | 20.74 | 70.39 | 241.90 |
| Borrowings | 67.71 | 59.58 | 113.58 |
| Other N/C liabilities | 26.31 | 35.80 | 38.90 |
| Current liabilities | 357.44 | 803.56 | 959.51 |
| Total Liabilities | 520.37 | 1,021.43 | 1,424.79 |
| Assets | |||
| Net Block | 115.93 | 281.51 | 377.23 |
| Capital WIP | 0 | 8.42 | 90.69 |
| Intangible WIP | 0 | 0 | 0 |
| Investments | 0 | 37.35 | 39.93 |
| Loans & Advances | 2.01 | 9.34 | 76.90 |
| Other N/C Assets | 0.98 | 1.33 | 0.19 |
| Current Assets | 401.44 | 683.49 | 839.87 |
| Total Assets | 520.37 | 1,021.43 | 1,424.79 |
EPACK Durable Ltd. Cash Flows
| EPACK Durable Ltd. | MAR 2021 (Crores) | MAR 2022 (Crores) | MAR 2023 (Crores) |
|---|---|---|---|
| Profit from operations | 10.61 | 26.54 | 41.99 |
| Adjustment | 34.63 | 40.58 | 56.43 |
| Changes in Assets & Liabilities | 4.08 | -107.78 | -70.40 |
| Tax Paid | -1.84 | -8.35 | -11.07 |
| Operating Cash Flow | 47.47 | -49 | 16.94 |
| Investing Cash Flow | -6.74 | -203.64 | -216.03 |
| Financing Cash Flow | -42.54 | 268.84 | 239.25 |
| Net Cash Flow | -1.81 | 16.19 | 40.17 |
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EPACK Durable: Attractive Investment or Red Flag?
Based on the financial ratios you provided, EPACK Durable presents a mixed picture for potential investors.
Positives:
- High Sales Growth: Revenue growth of 65.88% signals strong market traction and expansion potential.
- Low Debt: Debt-to-equity ratio of 1.57 suggests prudent financial management and lower risk compared to heavily leveraged companies.
- Decent ROE: Return on equity at 14.65% indicates efficient use of shareholder investments to generate profits.
Negatives:
- Overvalued: PE ratio of 67.81 makes the stock relatively expensive compared to its earnings, potentially indicating overvaluation by the market.
- Poor Margin and ROA: Low operating margin (6.24%) and ROA (2.49%) raise concerns about operational efficiency and the company’s ability to convert assets into profits.
- Inefficient Inventory Management: Inventory turnover ratio of 5.90 suggests the company isn’t effectively managing its inventory and working capital, which can put strain on cash flow.
- No Dividend: Lack of current dividend payout might disappoint investors seeking income from their investments.
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Conclusion
While EPACK Durable shows promising growth and low debt, concerns about valuation, profitability, and efficiency make it a less compelling investment at this time.
Consider exploring companies with lower PE ratios, stronger profitability, and efficient working capital management for potentially better investment opportunities.
FAQs
Does Epack Durable Ltd. Pays Dividends?
No, Currently Epack Durable ltd. doesn’t pay any dividends to its shareholders.
