EPL LIMITED Receives 'Buy' Rating from MarketsMOJO, Shows Strong Fundamentals and Positive Technical Trends

EPL LIMITED, a leading player in the plastic products industry, has recently received a 'Buy' rating from MarketsMOJO. This upgrade comes as a result of the company's high management efficiency, with a ROCE of 15.66%, and its strong ability to service debt, with a low Debt to EBITDA ratio of 0.82 times.
In addition, the stock is currently in a bullish range and has shown positive technical trends since August 5, 2024, generating a return of 2.45%. The MACD and KST technical factors also indicate a bullish trend for the stock.

With a ROCE of 13.6, the stock is fairly valued and has an attractive Enterprise value to Capital Employed ratio of 2.7. It is also trading at a discount compared to its historical valuations. Despite a negative return of -1.26% in the past year, the company's profits have increased by 7%, resulting in a PEG ratio of 4.1.

One of the key strengths of EPL LIMITED is its high institutional holdings at 22.9%. This indicates that these investors have better capability and resources to analyze the company's fundamentals compared to retail investors.

However, there are some risks associated with investing in EPL LIMITED. The company has shown poor long-term growth, with an annual growth rate of only 4.04% in operating profit over the last 5 years. In addition, the results for March 2024 were flat, with a significant increase in interest expenses and a decrease in profits and EPS.

Furthermore, the stock has underperformed the market in the last year, generating negative returns of -1.26% while the market (BSE 500) has generated returns of 34.26%. Investors should carefully consider these risks before making any investment decisions.

Overall, EPL LIMITED has shown strong fundamentals and has received a 'Buy' rating from MarketsMOJO. However, investors should also be aware of the potential risks associated with the company before making any investment decisions.