Epack Durable Stock Falls to 52-Week Low of Rs.262.85 Amidst Continued Downtrend

The stock’s performance today underperformed its sector by 0.94%, continuing a trend of relative weakness. Trading below all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — Epack Durable’s price action signals sustained pressure from market participants. This contrasts with the broader market, where the Sensex opened higher at 85,470.92 points, gaining 284.45 points (0.33%) before settling near 85,261.85 points, just 0.03% shy of its own 52-week high of 85,290.06.

Over the past year, Epack Durable’s stock has generated a return of -36.13%, a stark contrast to the Sensex’s positive 9.92% performance over the same period. The stock’s 52-week high was Rs.673.65, highlighting the extent of the decline from its peak.

Financial metrics for Epack Durable reveal challenges in both top-line and profitability. The company reported a net sales figure of Rs.213.26 crore in the most recent quarter, representing a decline of 67.8% compared to prior periods. This downturn in sales coincided with a net loss after tax (PAT) of Rs.22.25 crore, which reflects a fall of 262.9% relative to the previous four-quarter average.

Operating profit to interest coverage ratio for the quarter stood at a low 0.03 times, indicating limited capacity to cover interest expenses from operating earnings. The company’s long-term fundamental strength is also subdued, with an average Return on Capital Employed (ROCE) of 6.14%, which is modest within the industry context. Additionally, the debt servicing ability is constrained, as evidenced by a Debt to EBITDA ratio of 4.51 times.

These financial indicators have contributed to a revision in the company’s evaluation, reflecting a cautious market assessment. The stock’s valuation metrics show an enterprise value to capital employed ratio of 2, suggesting an attractive valuation relative to capital base. Despite the recent price decline, the company’s profits have risen by 60% over the past year, resulting in a PEG ratio of 1.1, which provides some context to the valuation dynamics.

In terms of market participation, institutional investors have increased their stake by 1.43% over the previous quarter, now collectively holding 7.39% of the company’s shares. This shift indicates a degree of confidence from investors with greater analytical resources, although it has not yet translated into a reversal of the stock’s price trend.

Looking at the broader market context, the Sensex is trading above its 50-day moving average, with the 50 DMA positioned above the 200 DMA, signalling a bullish trend for the benchmark index. Mega-cap stocks are leading the gains, contributing to the Sensex’s modest rise of 0.09% today. This divergence between Epack Durable’s performance and the broader market highlights sector-specific and company-specific factors influencing the stock’s trajectory.

Over the last three years, Epack Durable has underperformed the BSE500 index across multiple time frames, including the last three months, one year, and three years. This sustained underperformance reflects challenges in both near-term results and longer-term growth prospects.

In summary, Epack Durable’s fall to a 52-week low of Rs.262.85 marks a continuation of a downward trend characterised by subdued sales, negative quarterly earnings, and constrained debt servicing capacity. While the stock trades at a valuation discount relative to peers, the prevailing financial metrics and market conditions have contributed to a cautious market stance. The company’s recent quarterly results and longer-term performance data provide a comprehensive picture of the factors influencing the stock’s current position.

Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →