EPL Ltd (EPL)
StalwartFairStock Score: 45/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 1/1
Key Financials
| Current Price | ₹244.6 |
| Market Cap | ₹7,834.48 Cr |
| P/E Ratio | 20.25 |
| ROCE | 17.48% |
| ROE | 32.14% |
| Dividend Yield | 2.04% |
| Profit Growth | -1.6% |
| Debt/Equity | 0.34 |
| Sales Growth | 25.3% |
| Promoter Holding | 26.38% |
| 52-Week Range | ₹176.4 — ₹273.75 |
| Sector | Industrial Products |
| Book Value | ₹89.43 |
Strengths
- High ROE of 32.14% and ROCE of 17.48% indicate strong capital efficiency
- Low debt/equity of 0.32 suggests a conservative balance sheet
- Sales growth of 13.26% shows the business is expanding
- Latest quarter profit of ₹83 Cr on sales of ₹1,149 Cr shows ongoing earning power
- Dividend yield of 2.30% provides some income support while waiting
Concerns
- Profit growth is negative at -2.80% despite revenue growth, indicating margin pressure
- Price-to-book of 7.31 is expensive and leaves little margin of safety
- Piotroski F-score of 4/9 points to deteriorating financial health
- Promoter holding of 26.38% is modest and may limit alignment with minority investors
AI Analysis
At ₹223.21, EPL is not a stock Benjamin Graham would call a bargain. I am paying ₹223.21 for ₹30.53 of book value, a price-to-book of 7.31. Value investors normally avoid that. But high returns can justify a premium, and EPL earns a return on equity of 32.14% with a return on capital employed of 17.48%. Those are impressive numbers. Debt is only 0.32 times equity, so the balance sheet is not a risk. Sales grew 13.26% last year, and the latest quarter shows revenue of ₹1,149 Cr and net profit of ₹83 Cr. There is also a 2.30% dividend yield while I wait. Still, I must be honest: profit fell 2.80% despite sales growth. That is a warning sign. The Piotroski F-score of 4/9 tells me the financial health has weakened, and the FairStock score of 39/100 is mixed. A P/E of 16.84 is acceptable, but the high price-to-book leaves little room for error. If ROE slips, the valuation becomes uncomfortable. The PEG ratio of 1.27 works only if sales growth eventually reaches the bottom line. Promoter holding of 26.38% is not high, so I would like to see stronger alignment. The 52-week range of ₹176.40 to ₹252.50 reminds me that this stock can be bought cheaper. My conclusion: this is a decent business, probably a stalwart, but not a compelling buy at this price. I will wait for either a lower price or evidence that profit growth has turned positive.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer