Essel: Looking for consolidation benefits - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Essel: Looking for consolidation benefits

May 16, 2001

Essel Propack Limited (formerly Essel Packaging) has reported a net profit growth of 16% to Rs 95 m in 4QFY01. The company's turnover during the period saw a 23% growth YoY. Essel finished FY01 with a 10% turnover growth and an 18% jump in net profit.

(Rs m)4QFY004QFY01ChangeFY00FY01Change
Net Sales 469 578 23.2% 2,070 2,281 10.2%
Other Income 18 57 215.0% 40 85 112.5%
Expenditure 287 416 44.9% 1,299 1,486 14.4%
Operating Profit (EBDIT) 182 162 -11.2% 771 794 3.0%
Operating Profit Margin (%)38.8%28.0% 37.2%34.8% 
Interest 93-64.4%256-74.8%
Depreciation7469-6.2%2782790.2%
Profit before Tax11814623.5%50759417.2%
Exceptional expenses--  - 
Tax365141.7%14116114.2%
Profit after Tax/(Loss)829515.5%36643318.4%
Net profit margin (%)17.5%16.4% 17.7%19.0% 
No. of Shares (eoy) (m)14.524.3 14.524.3 
Diluted no. of shares (m)24.324.3 24.324.3 
Earnings per share*13.515.6 15.017.8 
*(annualised)      
Current P/e ratio    9.7 

Essel makes lamitubes used in packaging consumer products like toothpaste, cosmetics and pharmaceuticals. It is the world's largest producer of collapsible lamitubes with a current capacity of more than 2 bn tubes post its merger with Propack in FY01. Essel's early entry into the lamitube market and the scale of its operations gives it tremendous cost advantages over any new entrant. It is also backwardly integrated into web-making for lamitubes.

The company has not merged the accounts of Propack with itself in FY01. Therefore, the real benefits of the consolidation will come into effect from FY02. At the analyst meet last year the management had stated that the combined turnover of Essel Propack will touch Rs 15 bn by FY05, thatís a CAGR growth of 60% in the next four years. Similarly, the net profit of the combined entity is estimated (by the Essel management) to touch Rs 3.3 bn by FY05. One cannot really comment on these targets unless one sees Essel Propack's merged numbers.

The company had allotted bonus shares in the ratio of 3:5 in January 2001.Consequently the paid up capital has increased to Rs 243 m. Essel's board of directors has recommended maintaining the dividend at 54% on the post bonus increased share capital.

At the current price of Rs 173 the stock trades at a P/E multiple of 9.7 times its FY01 earnings.

Equitymaster requests your view! Post a comment on "Essel: Looking for consolidation benefits ". Click here!

  

More Views on News

EPL Announces Quarterly Results (3QFY21); Net Profit Up 17.3% (Quarterly Result Update)

Feb 3, 2021 | Updated on Feb 3, 2021

For the quarter ended December 2020, EPL has posted a net profit of Rs 725 m (up 17.3% YoY). Sales on the other hand came in at Rs 8 bn (up 7.9% YoY). Read on for a complete analysis of EPL's quarterly results.

ESSEL PROPACK Announces Quarterly Results (1QFY21); Net Profit Up 13.3% (Quarterly Result Update)

Aug 24, 2020 | Updated on Aug 24, 2020

For the quarter ended June 2020, ESSEL PROPACK has posted a net profit of Rs 457 m (up 13.3% YoY). Sales on the other hand came in at Rs 7 bn (up 17.7% YoY). Read on for a complete analysis of ESSEL PROPACK's quarterly results.

More Views on News

Most Popular

Hotel Stocks Will Reward Investors (Fast Profits Daily)

Jun 8, 2021

This is why I'm bullish on the hotel and hospitality sector.

My 'Unlock' Investments (Fast Profits Daily)

Jun 11, 2021

The best unlock investments you can make in the market.

The Most Visible Sign of India's Revival is on Two Wheels (Profit Hunter)

Jun 9, 2021

Investing in the best stocks could result in wealth compounding on a massive scale.

How I Discovered a 400-Year-Old Open Secret to Extreme Wealth (Profit Hunter)

Jun 11, 2021

Charlie Munger's open secret about investing success.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

EPL SHARE PRICE


Jun 16, 2021 (Close)

TRACK EPL

EPL - COSMO FILMS COMPARISON

COMPARE EPL WITH

MARKET STATS