Essel Propack

Why not Uflex? CEO is a fan of cricket 🙂 I have even seen their factory in Noida from outside though.

Market Cap.: ₹ 3,846.59 Cr.

Current Price: ₹ 244.85

Book Value: ₹ 68.93

Stock P/E: 22.28

Dividend Yield: 0.90%

Good profit growth

Good competitors like uflex, time techno-plast

25% growth

net profit 192 price looks okay as growth is a lot. What if profit growth become flat?

But seems overall great company from annual report. Management looked good to me. They are currently in process of generating more cash by selling contract note there was a fancy term I forgot CD (for short term borrowing)? So looks like they can generate good profit from any cash lying around. Expanding the business a lot. Small wiki page looked like advertisement(although was not flagged so not sure why). Fast growth capable management. Company is capitalizing interest cost but that is because it’s profit growth is lot more than interest it is supposed to give. Even if the growth goes down by 30% still it seemed like a good bargain.

What is their IP? How are they saying that it is a brand among it’s clients. Who are competitors outside India? Uflex also looked good to me. I need to study more but looks okay till now. On price fall you can accumulate I guess. most probably fall in price will occur soon as current sell was not that great.

 Final Verdict:(For me) Need to study more about market and competitors. Don’t understand the business right now. More work/time needed from my side. Doesn’t seem interesting to me for all this. For the sake of time I have spent on this company I think I can invest on dips.

I am very new to value investing and this is me taking random notes just for myself. Please don’t base any of your decision on these write-ups. That will be foolish.


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