EPL retains 'Buy' tag from Motilal Oswal amid top-deck churn; check reasons

The analysts at MOFSL, believe that the structural and leadership changes position EPL well to drive its next growth phase

Brokerage firm Motilal Oswal Financial Services (MOFSL) remains bullish on specialty packaging company EPL and has reaffirmed its Buy rating on the stock, despite an ongoing leadership transition.

 

The brokerage has reiterated its 'Buy' call on EPL shares with a target price of ₹280, valuing the stock at 17 times the estimated FY27 earnings per share (EPS) of ₹16.7.

 

Amidst this, EPL shares kicked off Tuesday’s trading on a firm note. At 09:43 AM on Tuesday, the company’s shares were quoted trading higher by 0.39 per cent at ₹207.98 per share against the previous close of ₹207.18 on the NSE. A combined total of nearly 0.64 lakh equity shares of EPL, estimated to be worth ₹1.34 crore, have exchanged hands on the NSE and BSE till now today. The company’s total market capitalisation stood at ₹6,660 crore on the NSE as of Tuesday, October 14.  CATCH STOCK MARKET LIVE UPDATES TODAY

EPL leadership transition 

EPL is set for a key leadership change with Hemant Bakshi appointed as CEO-designate, effective October 13, 2025. Bakshi will succeed Anand Kripalu as Managing Director and Global CEO from January 1, 2026, following Kripalu’s scheduled retirement in December 2025.

 

MOFSL analysts noted that EPL’s management remains confident about continued support from private equity firm Blackstone. While Blackstone, which holds a stake in EPL, may consider an exit in the future, it continues to see significant potential for value unlocking within the company.

 

Sumant Kumar, Meet Jain, Nirvik Saini, and Yash Darak, research analysts at MOFSL, believe that the structural and leadership changes position EPL well to drive its next growth phase.  ALSO READ | Nomura splits Tata Motors' post-demerger targets between PV and CV biz 

“We continue to estimate a compound annual growth rate (CAGR) of 9 per cent in sales, 12 per cent in EBITDA, and 20 per cent in adjusted PAT over FY25-28E, supported by improved operational efficiencies and a strategic focus on expanding market share across geographies in the Biaxially Oriented Nylon (BNC) segment,” the analysts wrote in their research note.

 

The brokerage also highlighted the strategic support from Indorama Ventures, which acquired a 24.9 per cent stake in EPL. The company’s Thailand plant was commissioned in record time, a feat attributed to Indorama’s backing.

 

The company’s management, analysts said, reaffirmed that Blackstone’s engagement and support remain strong, even as it may plan a future exit. Blackstone continues to believe in EPL’s long-term value unlocking potential.