EMS stock with revenue guidance of ₹5,000 Cr for next 3 years to keep on your radar
This EMS stock which is an Original Design Manufacturer (ODM) for air conditioners and other small appliances with a market share of ~24 percent in RAC ODM in India, expects to reach Rs. 5,000 crore revenue by within the next 3 years.
Share Price Movement
In the Friday’s trading session, Epack Durable Ltd’s share price closed at Rs. 372.00 per share, which is 0.51 percent higher than the previous closing price of Rs. 370.10 per share.
In the past year, the stock has delivered around 103.21 percent and has outperformed the Nifty Index in the past year.
Future Outlook
The company’s management said that they are targeting a revenue of Rs. 5,000 crore within the next three years and further expects its profits to reach Rs. 125 crore by FY28. They are focused on maintaining their EBITDA margins between 7.25 to 7.5 percent this year and plan to improve beyond 7.5 percent in the coming 2 to 3 years.
Further, the MD & CEO of Epack Durable Limited, Ajay DD Singhania said “For FY26, washing machines are something we will scale up. So that’s one appliance. We have a lot of smaller appliances like air fryers and all, which we will start from Q1 of FY26. So that’s again something that we believe will ramp up very fast” as per sources.
Also read: Sensex crashed nearly 1400 points & Nifty over 400 points; Here’s everything you need to know
Q3FY25 Financial Performance
In its latest filing for the quarter ending December 2024, the company reported a 35.03 percent rise in revenue, reaching Rs.376.84 crore compared to Rs.279.06 crore in Q3FY24. On a quarter-over-quarter basis, the operational revenue declined by 0.06 percent from Rs.377.10 crore in Q2FY25.
During the same period, net profit slumped by 48.67 percent to Rs.2.51 crore in Q3FY25, compared to Rs.4.89 crore in Q3FY24, and turned profitable on a quarter-on-quarter basis from a loss of Rs. 8.49 crore.
The EBITDA margins declined from 8.49 percent in Q3FY24 to 6.37 percent in Q3FY25. Further, PAT margins saw the same trend from 1.76 percent to 0.66 percent in the same period.
Epack recognises the revenue from a single segment which is the manufacturing of consumer durable products as of the December 2024 quarter.
Business Mix
As of 9MFY25, the company earned 77 percent of its operational revenue from Room Air Conditioners (RACs), followed by 17 percent from Small Domestic Appliances (SDAs) and Others and 6 percent from Components.
Company Profile
EPACK Durables is India’s leading OEM & ODM manufacturer of air conditioners and home appliances including induction cooktops and water dispensers. It holds a 24 percent market share in room air conditioners and aims to expand its product portfolio over the period.
Their upcoming products include an FA Washing Machine, Air Fryer, Room Oil Heater, Tower Fan, Hair Dryer, Induction Water Heater, and others.
Written by – Santhosh S
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
