Top Mutual Fund Pick In Packing Sector Surges 7% – Are We Witnessing a Bull Run?

On Wednesday, the NSE benchmark Nifty 50 opened the session above the 18,300 mark, however, soon after opening in positive terrain, profit booking emerged and as a result, the index is currently trading down by 100 points from the day’s high. Also, it has slipped below the prior trading session low and at present, it is trading near the day’s low. 

The broader markets are also witnessing profit booking with Nifty Midcap and BSE Smallcap index trading with a cut of 0.64% and 0.45%, respectively. Considering the underperformance by broader markets, the advance-decline is in favour of declines as 1166 stocks were trading in red on NSE. Despite a heavy number of stocks declining, they have outpaced the number of stocks advancing. There are a few stocks which are seeing flying with colours in the early trading session on Wednesday and one of the stocks which grabbed the attention of investors is EPL Ltd. 

Price and Volume Action 

The stock of EPL Ltd has skyrocketed nearly 7% in an otherwise fragile market. The stock opened around the level of Rs 173.45 and from there on the stock has gone from strength to strength to touch an intra-day high of Rs 185.45. Interestingly, the stock has taken support from the rising trendline which is joined by connecting subsequent lows from April 21, 2023. 

The volume activity is noteworthy as within the first hour of trade the stock has witnessed total volume traded in excess of 21 lakh shares which is the highest single-day volume registered since last week of March and a more than threefold rise when compared with its 10-day average volume. 

Double Digit Revenue Growth 

In Q3FY23, the company reported solid results in terms of revenue growth and profit. Excluding EAP or East Asia Pacific, which was impacted by COVID challenges, the company posted double-digit revenue growth of 12.1%, which is 12.7% at constant currency, Africa, Middle East and South Asia (AMESA) grew by 9.2%, America and Europe at 19% and 10.3%, respectively. 

Institutional Holding Increases 

Institutional Investors have increased holdings from 28.05% to 28.34% in the March 2023 quarter aided by flows from Mutual Funds. Mutual Funds have increased holdings from 10.33% to 13.30% during the same period. 

Company Profile 

EPL Limited (formerly known as Essel Propack Limited), is the largest speciality packaging global company, manufacturing laminated plastic tubes catering to the Beauty & Cosmetics, Pharma & Health, Food, Oral and Home.