Shares of EPL , a leading global specialty packaging company, continued their upward trend for the second consecutive trading session on Tuesday, gaining 8.5% intraday to reach a 11-month high of ₹ 219 per share. Since April, the stock has maintained strong growth, achieving a 22% increase to date.
Despite this, it remains approximately 32% below its peak of ₹ 318.60 per share, set in August 2020. The shares were impacted by the drop in the company's financial performance.
Also Read : Allied Blenders shares dip after positive debut. Buy, sell or hold? However, the recent rally in share price is expected to persist as the company is seeing a strong demand for its products, driven by robust interest from a diverse range of customers, including both large multinational corporations and local clients. According to Systematix Institutional Equities' latest report, EPLL's operations in Brazil are reporting strong EBITDA margins, capitalising on its unique position as the sole strategic global tube supplier in a significant consumer market.
This market presence includes global customers, enhancing its strategic advantage. Also Read : Gold beats Nifty 50 in H1CY24; will the shine last? What should investors do? With increasing customer demand for proximity to manufacturing locations, EPLL's Brazil facility is poised for substantial growth. The company remains optimistic about maintaining strong margins, foreseeing Brazil as a key contributor to overall EBITDA margin enhancement.
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