Shares of tube-packaging company Essel Propack Ltd gained 18 per cent after the company reported a 14 per cent year-on-year jump in its consolidated net profit to Rs 45.62 crore for the June quarter. Essel Propack stock was at Rs 235.90 up 15 per cent from its previous close, while the benchmark index, Sensex fell 0.20 per cent to 37661.63.
The company’s revenue from operations climbed 17.72% to Rs 741.49 crore. Total expenses were up 13 per cent at Rs 669.04 crore. Analysts at Motilal Oswal said the COVID-19 impact is expected to be minimal on the company’s performance in the medium-to-long term as its products are classified as essential items.
“In a short time, Essel has partnered with more than 50 brands (multinational and domestic) to become a leading supplier of hand sanitizer tubes. We increase our earnings estimate by 20%/12% for FY2021/FY2022E, encouraged by its robust performance during the lockdown and new product launches,” it said. The brokerage has a buy rating on the stock vessel Propack is a global tube-packaging company sand manufacturer of laminated plastic tubes for fast-moving consumer goods and pharma space.