1. At a Glance
Epack Durable is India’s second-largest ODM for air conditioners, slinging 24% market share while manufacturing under other people’s brand names. Strong top-line growth, wobbly margins, and an IPO-fueled ambition to become the OEM world’s Durex (widely used but nobody knows it’s them). Buckle up.
2. Introduction with Hook
Imagine if Da Vinci painted the Mona Lisa but someone else slapped their signature on it and took all the credit. That’s basically Epack Durable’s life—designing and manufacturing air conditioners that proudly say “Voltas” or “Whirlpool” on the box, while Epack quietly collects the cheque.
- 96% profit CAGR in the last five years (yes, you read that right).
- 24% market share in India’s RAC (room air conditioner) OEM/ODM segment in H1FY25.
So why does a company with skyrocketing sales and a solid product line get ignored like pineapple on a pizza? Let’s crack this case wide open.
3. Business Model (WTF Do They Even Do?)
Epack Durable is in the business of “making things for others who make more money from it.” Specifically:
- ODM (Original Design Manufacturer) for room air conditioners (RAC) and small domestic appliances.
- End clients? Voltas, Blue Star, Whirlpool—you name it.
- Locations: Noida, Dehradun, Bhiwadi, Sri City. And now they’re dabbling in washing machines too.
Revenue Split (est.):
- RACs: ~90%
- Other appliances: ~10% and rising
Basically, they’re the backstage crew of India’s white goods circus.
4. Financials Overview
FY25 Revenue: ₹2,171 Cr
FY25 Net Profit: ₹58 Cr
OPM: 7%
P/E: 60.5 (because “future growth” is a religion now)
5-Year Sales CAGR: 23%
5-Year PAT CAGR: 96%
They’re growing faster than your gym subscription guilt, but returns on capital remain sobering. Still, unlike most new-age IPO babies, these guys make real products. No SaaS buzzwords here.
5. Valuation
Let’s assume you’re not insane and won’t value this at 100x earnings.
Base Case:
- EPS FY25 = ₹6.07
- Expected P/E = 45 (premium for growth, discount for margin risk)
- FV = ₹270 – ₹320
Bull Case:
- Margins improve to 9%, FY26 EPS ₹8
- P/E = 50
- FV = ₹375 – ₹400
Bear Case:
- Margins fall back to 5%, EPS stagnates
- P/E = 30
- FV = ₹180 – ₹200
Current Price: ₹367
Translation: the market’s already pricing in some chill growth but no freeze in sight.
6. What’s Cooking – News, Triggers, Drama
- Commercial launch of washing machines at Sri City
- GST notices of ₹19.87L (more nuisance than news)
- Public shareholding up from 32.4% to 43.8% in one year
- IPO recency still in hangover phase, but cooling off
- ODM tailwinds: PLI schemes, rising “Make in India” push, China+1
Triggers?
- RAC demand + summer scorchers
- Entry into washing machines
- Global outsourcing surge
7. Balance Sheet
| FY | Equity | Reserves | Borrowings | Total Liabilities | Fixed Assets |
|---|---|---|---|---|---|
| 2020 | ₹48 Cr | ₹13 Cr | ₹270 Cr | ₹492 Cr | ₹113 Cr |
| 2025 | ₹96 Cr | ₹861 Cr | ₹416 Cr | ₹2,018 Cr | ₹691 Cr |
Key Points:
- Debt seems stable, but not cheap
- Net worth has grown 6x in five years
- Capex-intensive growth strategy (washing machine expansion = ₹58 Cr CWIP)
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| 2020 | ₹43 Cr | ₹-9 Cr | ₹-24 Cr | ₹10 Cr |
| 2025 | ₹31 Cr | ₹-94 Cr | ₹-29 Cr | ₹-93 Cr |
Interpretation:
- Operations are generating cash, but investing faster than a teenager’s UPI on Zomato.
- Free cash flow? What’s that?
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 9.91% |
| ROE | 6.29% |
| OPM | 7% |
| Debtor Days | 50 |
| Inventory Days | 117 |
| CCC | 59 Days |
Verdict:
- ROE still low for a high-growth business
- Working capital improved (thanks to better receivables)
- Needs margin expansion to look sexier on paper
10. P&L Breakdown – Show Me the Money
| FY | Revenue | Operating Profit | Net Profit | OPM | EPS |
|---|---|---|---|---|---|
| 2020 | ₹770 Cr | ₹37 Cr | ₹2 Cr | 5% | ₹0.42 |
| 2025 | ₹2,171 Cr | ₹158 Cr | ₹58 Cr | 7% | ₹6.07 |
Narrative:
From modest beginnings to full-blown ODM scale-up, Epack has grown revenues 3x in 5 years. But margins are still finding their footing like a baby deer on ice.
11. Peer Comparison
| Company | CMP | P/E | ROCE | OPM | Revenue (TTM) | PAT |
|---|---|---|---|---|---|---|
| Voltas | ₹1,369 | 55 | 17.6% | 6.42% | ₹15,412 Cr | ₹823 Cr |
| Blue Star | ₹1,799 | 63 | 26.0% | 7.31% | ₹11,967 Cr | ₹581 Cr |
| Amber Ent | ₹7,466 | 104 | 14.4% | 7.35% | ₹9,973 Cr | ₹243 Cr |
| Epack | ₹367 | 60 | 9.91% | 7.27% | ₹2,170 Cr | ₹58 Cr |
Key Insight:
- Valuation-wise, Epack is running with the big boys, despite being the little guy.
- Market’s betting on growth > size (for now).
12. Miscellaneous – Shareholding, Promoters
| Stakeholder | Mar 2025 |
|---|---|
| Promoters | 48.04% |
| FIIs | 1.58% |
| DIIs | 6.57% |
| Public | 43.81% |
Other Tidbits:
- No dividend (like your ex, still not paying back)
- Promoter holding stable
- FII love is minimal but growing
- Retail confidence rising like Indian summer temps
13. EduInvesting Verdict™
Epack Durable is that nerdy underdog in a college full of jocks. It doesn’t flex biceps (aka big brands), but it quietly tops the ODM class. The fundamentals are decent, growth runway is real, but profitability still needs a protein shake.
If they manage to sweat less on margins and churn out stronger returns, the story could be as durable as their name. But for now, it’s a stock priced for its ambition, not its balance sheet.
Metadata
– Written by Prashant Marathe | 12 July 2025
– Tags: ODM, Consumer Durables, AC Stocks, IPO 2024, SmallCap India, Washing Machines, White Goods, Earnings Momentum
