ICICI Direct's research report on EPC Industrie
EPC Industrie (EPC) in a latest press release has disclosed registration as a recognised micro - irrigation player in the state of Maharashtra for a period of 5 years (up to Sep 2022). The said order supersedes the ban imposed on the company dated July 2016 and now makes it eligible to participate in the state government administered micro irrigation subsidy scheme. EPC has also indicated a loss of sales for the company as well as industry in the month of July 2017 due to transition towards GST and pending pricing finalisation by various state governments.
Outlook
We maintain our positive view on EPC given the strong parentage (M&M) and focus on quality driven product profile. We have maintained our estimates and continue to assign a BUY rating on the stock. We value EPC at Rs 230, i.e. 2.2 x MCap/s ales on FY1 9 E sales of Rs 288 crore. Perse, EPC is a rare play on the MIS theme that can create wealth from a three to five - year perspective, given the trajectory of farmer awareness on MIS & subsequent capitalisation of opportunity by EPC.
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