MUMBAI: Shares of tube-packaging company Essel Propack Ltd gained 18% after the company reported a 14% year-on-year jump in its consolidated net profit to ₹45.62 crore for the June quarter.
At 12 pm, Essel Propack stock was at ₹235.90 up 15% from its previous close, while the benchmark index, Sensex fell 0.20% to 37661.63.
The company's revenue from operations climbed 17.72% to ₹741.49 crore. Total expenses were up 13% at ₹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 lockdown and new product launches," it said. The brokerage has a buy rating on the stock
Essel Propack is a global tube-packaging company sand manufacturer of laminated plastic tubes for fast moving consumer goods and pharma space.