EMS Stock: A Strong Contender with ₹5,000 Cr Revenue Target in 3 Years
Introduction
EMS Stock : EPACK Durables Ltd, a leading Original Design Manufacturer (ODM) in India, has set an ambitious target of reaching ₹5,000 crore in revenue within the next three years. With a dominant 24% market share in Room Air Conditioners (RACs), the company is focused on expanding its product portfolio and enhancing profitability.
The company’s recent financial performance, along with its growth outlook, makes it a stock to keep an eye on. Let’s dive deeper into the company’s progress, future strategies, and key financial metrics.
Stock Performance & Market Movement
In the latest trading session, EPACK Durable Ltd closed at ₹372.00 per share, reflecting a 0.51% increase from its previous close of ₹370.10.
Over the past year, the stock has delivered an impressive return of 103.21%, significantly outperforming the Nifty Index. This strong performance has garnered attention from investors, making EPACK a promising long-term bet.
Future Growth Prospects
The management of EPACK Durable has outlined a clear roadmap for growth:
- The company is aiming to achieve ₹5,000 crore in revenue by FY28.
- Profitability is also expected to rise, with net profits projected to reach ₹125 crore by FY28.
- The company is targeting EBITDA margins of 7.25% – 7.5% this year, with a goal of exceeding 7.5% in the next 2-3 years.
In a recent statement, Ajay DD Singhania, MD & CEO of EPACK Durables, highlighted the company’s focus on expanding its product line. He stated:
“For FY26, washing machines are something we will scale up. We have a lot of smaller appliances like air fryers, which we will start from Q1 of FY26. That’s something we believe will ramp up very fast.”
This signals an aggressive push toward new product categories, which could further strengthen the company’s revenue streams.
Q3FY25 Financial Performance
EPACK Durables posted strong revenue growth in the December 2024 quarter, but profit margins took a hit.
| Financial Metric | Q3FY25 | Q3FY24 | YoY Growth |
|---|---|---|---|
| Revenue | ₹376.84 Cr | ₹279.06 Cr | 35.03% ↑ |
| Net Profit | ₹2.51 Cr | ₹4.89 Cr | 48.67% ↓ |
| EBITDA Margin | 6.37% | 8.49% | Declined |
| PAT Margin | 0.66% | 1.76% | Declined |
While revenues surged by 35.03% YoY, net profit saw a significant decline of 48.67%, mainly due to rising operational costs and lower EBITDA margins. However, the company managed to turn profitable on a QoQ basis, rebounding from a loss of ₹8.49 crore in Q2FY25.
Business Mix & Revenue Breakdown
EPACK Durables derives its revenue from three key segments:
- Room Air Conditioners (RACs): 77%
- Small Domestic Appliances (SDAs) & Others: 17%
- Components: 6%
This distribution highlights the company’s stronghold in the RAC segment, while also signaling its push towards expanding into smaller appliances and washing machines.
Company Profile & Competitive Edge
EPACK Durables is a market leader in the manufacturing of air conditioners and home appliances, with a 24% share in the RAC segment. The company is now diversifying into new products, including:
- FA Washing Machines
- Air Fryers
- Room Oil Heaters
- Tower Fans
- Hair Dryers
- Induction Water Heaters
With an aggressive expansion strategy, EPACK is well-positioned to strengthen its presence in the fast-growing Indian consumer durables market.
Key Financial Ratios & Market Data
| Metric | Value |
|---|---|
| Market Cap | ₹3,546 Cr |
| Current Price | ₹370 |
| 52-Week High / Low | ₹674 / ₹151 |
| Stock P/E | 78.4 |
| Book Value | ₹94.9 |
| Dividend Yield | 0.00% |
| ROCE (Return on Capital Employed) | 8.32% |
| ROE (Return on Equity) | 5.85% |
| Debt to Equity Ratio | 0.54 |
| Promoter Holding | 48.0% |
| Pledged Shares | 8.13% |
| QoQ Profit Growth | 130% |
| Industry P/E | 75.2 |
| Intrinsic Value | ₹152 |
| RSI (Relative Strength Index) | 38.6 |
| EPS (Earnings Per Share) | ₹4.73 |
| PEG Ratio | – |
| 200-Day Moving Avg (DMA) | ₹376 |
| Debt | ₹488 Cr |
| 3-Year Free Cash Flow | ₹-319 Cr |
| 5-Year Free Cash Flow | ₹100 Cr |
These financial metrics indicate that EPACK is a high-growth stock with significant upside potential, but investors should also consider its high P/E ratio and debt levels.
Conclusion: Should You Keep EPACK Durables on Your Radar?
EPACK Durables is emerging as a key player in the Indian consumer durables sector, with aggressive expansion plans, strong revenue growth, and a clear strategy for improving profitability.
While the stock has delivered over 100% returns in the past year, its high valuation (P/E of 78.4) and declining profit margins could be potential risks. However, with new product launches, expansion in the washing machine and small appliance categories, and a target of ₹5,000 crore in revenue, EPACK remains a stock worth monitoring.
If the company successfully executes its growth strategy while improving margins, it could be a long-term winner in the Indian consumer electronics market.
Would you consider investing in EPACK Durables? Let us know in the comments below!
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.