ECOPLAST Limited : Packaging stock availaible at attractive valuations at CMP of Rs 44-47 one year target 65

  

Ecoplast Ltd is one of India’s most respected and largest suppliers of multilayer co-extruded polyethylene and co-polymer films to the flexible packaging industry as well as a variety of other specialty applications around the world.

 
Company has factory at Valsad Gujrat and has strong base of MNC customers such As Nestle, Cadbury, P&G ,HUL apart from local Indian companies. Packaging industry is growing at 10% rate an expected to improve further with increasing demand.
Financial Performance :

(in Cr.)	2014	2013	2012	2011	2010
Income Statement
Revenue	82.21	76.45	59.88	66.22	48.61
Other Income	--	--	--	0.07	-0.02
Total Income	82.21	76.45	59.88	66.29	48.59
Expenditure	-76.19	-70.24	-54.22	-59.53	-44.27
Interest	-1.86	-1.98	-1.73	-1.12	-0.81
PBDT	4.16	4.24	3.93	5.64	3.50
Depreciation	-1.46	-1.43	-1.36	-1.15	-1.23
PBT	2.70	2.81	2.57	4.49	2.27
Tax	-0.84	-0.88	-0.78	-1.44	-0.97
Net Profit	1.86	1.93	1.79	3.06	1.31
Equity	3.00	3.00	3.00	3.00	3.00
EPS	6.19	6.42	5.98	10.19	4.36
CEPS	11.05	11.20	10.50	14.01	8.45
OPM %	7.32	8.13	9.45	10.21	8.88
NPM %	2.26	2.52	3.00	4.61	2.69

Company is expected to deliver turnover of approx. 90 crores for year 2015-16 with expected EPS of 6.5,Stock is available at cheap PE multiple of 7.company has been paying consistent dividend every year last year it paid divined of 12%.

One can invest in this stock at suggested range of 44-47 for one year target of 65