E-pack durables – ODM worth a serious look

Hi Midhunjoe

Thanks for detailed comparison. I have few points to add on EPACK growth story-

1. current a/c penetration in India is just 8% as compared to Global 45%. So there is huge headroom as you have also shown with 14% odd growth rate (Source Q-1 concall)

2. There biggest issue is period of Q2/Q3 where there is very less manufacturing of a/c units, which is a drag on profitability. This they are covering nicely with add on products like mixer, fans, washin machine etc. They have indicated good traction from reputed players for OEM. We should see that in Q3. This will be a big plus for OPM

3. in FY26 they are indicating there revenue mix of A/C Vs Others as 75:25 (current 86/14)

4. For FY 25 management is guiding for 8% margin and if point- 3 works it should be close to 10% which will be similar to PG electroplast ( mindyou they are not into high margin electric boards and other products with PGE do. So overtime EPACK might comeout better)

5. Motor Manufacturing is plus for margins as lot.of it goes for after sales where margins are very high( my guess…no data to back it)

So to me it is a very interesting company with Valuation comfort to jump in.