ECOPLAST LTD (526703) - STOCK OF THE WEEK

Dear friends, today I am expressing my view on one flexible packaging industry stock.

ECOPLAST LTD (526703)

Ecoplast was incorporated on 7th May 1981 as a private limited company. Then it is became public limited company in the year 1994. Today it is India’s one of the leading manufacture and supplier 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.  

Ecoplast has had a major role in the development of the flexible packaging industry in India ; this industry uses multi layer polyethylene and co-polymer films for laminating to one or more substrates, such as polyester film, polypropylene film, often in combinations with aluminium foil and/or paper, depending upon the packaging system.

Since over three decades, Ecoplast has been setting standards on high quality and innovation of multilayer film structures to provide the required film properties critical to pack, preserve and display a wide range of products world over.

Ecoplast has its manufacturing facility at Valsad, Gujarat. As a manufacturing specialist, Ecoplast has state-of-the-art machinery from leading technology and machine manufactures in the world. Company's machines give  the capabilities to delivery an outstanding product and allow us to constantly innovate better methods of production.  

PRODUCTS

Company main products falls under two segments, that is Lamination films and Surface protection films.

For many applications in flexible packaging, the use of a single material may not satisfy all of the properties demanded of the product. In these cases, a composite consisting of two or more layers of material may provide the desired performance. A particularly common means of creating such a composite is to laminate various polymeric films to other films, foils, papers, etc. with a polymeric adhesive. 

1. LAMINATION FILMS

Company's lamination are widely used in following industries.

Agro Industries

Cosmetics & Toiletries

Food & Beverages

Pharmaceuticals

Speciality Application:

·        Adhesive films for bonding substrates for the Automobile Industry.

·        Cement (25kg Pack)

·        Easy Open/Seal-Peel Films

·        Films for Vacuum Metalising

·        Lubricating Oils

·        PLASPER : Polymer based Synthetic Paper Retort Films

2. SURFACE PROTECTION FILMS.

Ecoplast Ltd. is a well-known manufacturer of surface protection films. Ecoplast provides complete range of surface protection films designed to prevent abrasion, scratching during manufacturing and damage during delivery cycles.

This products are widely used in following industries.

Stainless Steel

Aluminum Composite Panel

Coated Steel

Marble/Tiles

Aluminum Sections

PVC Sections

Decorative Laminates

Company is certified with ISO 14000,22000 and 9001.

Company is having global customer presence in more than 11 countries.

Company website: Click here

FINANCIALS AND OUTLOOK

Company shares are trading in BSE. Promoter holding in company 66.38% (Increased from March Qtr)

Company posted 96.85 Cr top line in Last Financial Year.

Net profit is 1.97 Cr bottom-line in the Last Financial year

Stock is trading low PE 15 as compared to industry PE & major peers.

EPS 6.56

Company is reducing debt.

Regular dividend paying company

Stock is trading at Rs 101.

Company is trading PE is low as compared to its peers and reducing trend of debt.

Promoters are increasing their stake in the company reveals the trust about the business and future growth for the company. As the Packaging industry is evergreen segment in the industrial segment, Ecoplast is serving most of all industrial segments. Company’s customers are growing in a good phase is a huge positive for the stock. Moreover Company’s overseas business is also growing very fast.

By looking at the above stock will rerate to its peers and will give decent returns to the investors.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN. 

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”