JM Financial maintains Buy on EPACK Durables, revises target price to Rs 480

JM Financial has maintained a Buy call on EPACK Durables with a revised target price of Rs 480 (Earlier Rs 540). The current market price of EPACK Durables is Rs 376.65. Time period given by the analyst is a year when EPACK Durables Ltd. price can reach defined target. EPACK Durables, incorporated in 2019, is a Small Cap company with a market cap of Rs 3656.85 crore, operating in the Consumer Durables sector.

EPACK Durables’ key products/revenue segments include Electrical Consumer Durables, Other Operating Revenue, Scrap and Export Incentives for the year ending 31-Mar-2024.

Financials
For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 648.75 crore, up 69.96% from last quarter Total Income of Rs 381.71 crore and up 22.12% from last year same quarter Total Income of Rs 531.25 crore. The company has reported net profit after tax of Rs 38.91 crore in the latest quarter. The company’s top management includes Mr.Bajrang Bothra, Mr.Nikhil Mohta, Mr.Shashank Agarwal, Mr.Sameer Bhargava, Ms.Priyanka Gulati, Mr.Krishnamachari Narasimhachari, Mr.Kailash Chandra Jain, Mr.Sanjay Singhania, Mr.Ajay D D Singhania, Mr.Vibhav Niren Parikh. Company has Deloitte Haskins & Sells as its auditors. As on 31-03-2025, the company has a total of 10 crore shares outstanding.

Investment Rationale
EPACK posted a good 4Q, with PAT rising 36% YoY and beating estimates. It expects to outgrow the industry through its customer diversification initiatives, a key contributor being the partnership with Hisense. ODM manufacturing for Hisense has already started, and the construction of the facility is also on track, with OEM manufacturing targeted by 3Q/4QFY26. The management has indicated an investment of Rs 4.5 billion-5 billion over the next 12-18 months to ramp up capacities, predominantly in Sri City. JM Financial factors in these capacity expansion plans and cut our FY26/27E EPS estimates by 2-9%. However, the stock price has broadly been flat over the last 6 months, leaving ~28% upside to our target price. They maintain BUY with a target price of Rs 460, at 40x Mar?27E EPS.

Promoter/FII Holdings
Promoters held 48.04 per cent stake in the company as of 31-Mar-2025, while FIIs owned 1.58 per cent, DIIs 6.57 per cent.