EPL Ltd is Rated Hold by MarketsMOJO

Understanding the Current Rating

The 'Hold' rating assigned to EPL Ltd indicates a neutral stance for investors, suggesting that the stock is fairly valued at present and may not offer significant upside or downside in the near term. This recommendation is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the stock’s investment potential.

Quality Assessment

As of 15 January 2026, EPL Ltd demonstrates a good quality grade. The company maintains a strong ability to service its debt, reflected in a low Debt to EBITDA ratio of 0.93 times, which indicates prudent financial management and manageable leverage. Additionally, the company has reported positive results for five consecutive quarters, underscoring operational consistency. The latest half-year figures show a Return on Capital Employed (ROCE) of 17.21%, which is a robust indicator of efficient capital utilisation. These quality metrics suggest that EPL Ltd has a stable business model with sound financial discipline.

Valuation Perspective

Currently, EPL Ltd’s valuation is considered attractive. The stock trades at an Enterprise Value to Capital Employed ratio of 2.2, which is below the average historical valuations of its peers in the packaging sector. This discount implies that the market may be undervaluing the company relative to its capital base. Furthermore, the company’s Price/Earnings to Growth (PEG) ratio stands at 0.4, signalling that earnings growth is not fully priced into the stock. Despite a one-year stock return of -13.26%, profits have risen by 43.4% over the same period, highlighting a disconnect between market price and underlying earnings growth. This valuation scenario suggests potential value for investors willing to look beyond short-term price movements.

Financial Trend Analysis

The financial trend for EPL Ltd is positive, though tempered by some long-term growth concerns. Net sales have grown at an annualised rate of 8.76% over the past five years, while operating profit has increased at 7.79% annually. These growth rates, while steady, are modest and indicate limited acceleration in the company’s top and bottom lines. However, the company’s operating cash flow for the latest year reached a high of ₹795.10 crores, and the profit after tax (PAT) for the last six months was ₹204.30 crores, growing at an impressive 35.12%. These figures reflect strong cash generation and profitability in the recent period, supporting the positive financial trend rating.

Technical Outlook

From a technical standpoint, EPL Ltd is currently rated as mildly bearish. The stock has experienced negative returns over multiple time frames: -3.70% over one month, -12.11% over six months, and -13.26% over the past year. It has also underperformed the BSE500 index over the last three years, one year, and three months. Despite this, the stock recorded a modest gain of 0.78% on the day of analysis (15 January 2026). The mildly bearish technical grade suggests that while the stock faces near-term headwinds, it is not in a severe downtrend, and investors should monitor price action closely for signs of reversal or consolidation.

Additional Considerations

Institutional investors hold a significant 27.39% stake in EPL Ltd, which is noteworthy as these investors typically possess greater resources and expertise to analyse company fundamentals. Their continued interest may provide some stability to the stock. However, the company’s long-term growth remains below par compared to sector benchmarks, which may limit enthusiasm among growth-focused investors.

What This Rating Means for Investors

For investors, the 'Hold' rating on EPL Ltd suggests a cautious approach. The stock is not currently positioned as a strong buy or sell, reflecting a balance between its attractive valuation and positive financial trends against its modest growth and mild technical weakness. Investors seeking stability and reasonable valuation may find the stock suitable for a core portfolio holding, while those looking for aggressive growth or momentum plays might prefer to monitor the stock for clearer directional signals.

Summary of Key Metrics as of 15 January 2026

To recap, the latest data shows:

• Mojo Score: 55.0, corresponding to a 'Hold' grade


• Market capitalisation categorised as smallcap within the packaging sector


• Debt to EBITDA ratio at a conservative 0.93 times


• Annualised net sales growth of 8.76% and operating profit growth of 7.79% over five years


• Operating cash flow at ₹795.10 crores for the latest year


• Profit after tax growth of 35.12% over the last six months


• ROCE at 16.9% with an attractive valuation multiple of 2.2 Enterprise Value to Capital Employed


• Stock returns of -13.26% over the past year despite profit growth of 43.4%


• Institutional holdings at 27.39%

These figures collectively underpin the current 'Hold' rating, reflecting a stock that offers value but also carries certain risks and limitations in growth and price momentum.

Looking Ahead

Investors should continue to monitor EPL Ltd’s quarterly results and sector developments closely. Improvements in long-term growth rates or a shift in technical momentum could prompt a reassessment of the stock’s rating. Meanwhile, the current 'Hold' status advises maintaining existing positions without aggressive accumulation or liquidation.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →