Shares of Essel Propack zoomed as much as 18 per cent to Rs 242 apiece on the BSE on Friday after the company reported a 14 per cent increase in its consolidated net profit at Rs 45.62 crore for the June quarter. The company had logged a profit of Rs 40.03 crore in the corresponding quarter of the previous fiscal.
At 10:12 am, the stock was quoting nearly 16 per cent higher at Rs 237.70 on the BSE. In comparison, the benchmark S&P BSE Sensex was trading at 37,623, down 113 points, or 0.3 per cent.
Essel Propack's revenue from operations climbed 17.72 per cent to Rs 741.49 crore, as against Rs 629.83 crore in the corresponding quarter of the previous fiscal. Total expenses were at Rs 669.04 crore compared to Rs 591.77 crore earlier, up 13.05 per cent. CLICK HERE TO READ REPORT
Post the result announcement, Edelweiss Securities upgraded the stock to "BUY" from "HOLD" citing the company's "strong delivery on sales and earnings, and sustained capital-efficient growth across geographies." The target price of the stock has been set at Rs 236.
The brokerage notes that Essel Propack (EPL) continues to deliver on return on capital employed (RoCE), up 421 basis points (bps) YoY in Q1FY21 to 19.9 per cent. "It remains the market leader in oral care space and is accelerating personal care performance. With its eco-friendly solutions (Platina, Green Maple Leaf), EPL has attained recognition from key agencies," it wrote in a result review note issued on July 30.