Euro Pratik Sales Ltd.  (Avoid)

Highlights

Euro Pratik Sales Ltd. (EPSL) incorporated in 2010, engaged in the business of decorative wall panel and decorative laminates industry as a seller and marketer of Decorative Wall Panels and Decorative Laminates.

The company creates unique design templates for Decorative Wall Panels and Laminates, aligning with modern architectural trends, and was recognized as an innovator for products like Louvres, Chisel, and Auris.

The company has built a strong presence in the decorative wall panels and laminates market over the past seven years, offering over 30 product categories with 3,000 designs. Positioning itself as a fast-fashion brand, it launched 113 catalogs in four years and provides eco-friendly, durable, and health-safe alternatives to traditional wall decor. Its distribution spans 116 Indian cities through 180 distributors across 25 states and 5 union territories, while also exporting to six international markets, with expansion plans into new high-growth regions.

As of FY25, EPSL operates a distribution network spanning 116 cities, supported by 180 distributors across 25 states and 5 union territories in India. Starting with Metro cities to build brand equity, company expanded to Tier-I, Tier-II, and Tier-III markets through strategic product placement and distributor partnerships. EPSL’s warehouses in Bhiwandi, Maharashtra, covering ~194,878 sq. ft. and located near Nhava Sheva port, ensure reliable supply to domestic and international markets.

EPSL will not receive any proceeds out of ~Rs. 4,513mn offer and all the offer proceeds will be received by the selling shareholders. The company expects that listing of the Equity Shares will enhance their visibility and brand image and provide liquidity.

Key Highlights

• The wall decorative industry was valued at Rs 1,95,630 mn in FY18 and grew at a CAGR of 10.1 pct, reaching Rs 3,16,982 mn by FY23. In FY24, the market grew by 8.1 pct, reaching Rs 3,42,728 mn and grew at a CAGR of 6.9 pct to reach INR 3,66,219 mn in FY5. The market is further projected to grow at a CAGR of 12.9 pct over the next five years, reaching Rs. 6,28,902 mn by FY29.
•  EPSL is one of India’s leading Decorative Wall Panel brands and have established themselves as one of the largest organized Wall Panel brands with a market share of 15.8 pct by revenue in the organized Decorative Wall Panels industry in India
• The company designs differentiated decorative wall panels and laminates tailored to contemporary architectural and interior trends, establishing itself as an industry innovator with products like Louvres, Chisel, and Auris, showcased at India Coverings Expo (2019–2022). It builds its portfolio by studying industry trends, consumer needs, and promoting its Euro Pratik and Gloirio brands through a strategic merchandising approach.
• Its eco-friendly, durable, and cost-effective products compete with wallpapers and premium paints, offering features like anti-bacterial, anti-fungal properties, absence of harmful heavy metals, and use of recycled materials, making them a sustainable alternative to conventional decoration products.
• The company built demand through strategic product placement and marketing, first focusing on metros to establish brand equity and then expanding to other regions. Its distribution system supports reliable delivery across India and abroad, backed by warehouses totaling about 194,878 sq. ft. in Bhiwandi, Maharashtra.
• EPSL’s key strategies include (i) Expansion into new markets (ii) Continue to expand distribution network and undertake measures to improve inventory management systems (iii) Continue to improve brand equity and consciousness (iv) focus on product innovation in response to evolving consumer preferences, etc.
• Sales of the company has grown by 3.8 pct CAGR in Over FY23-25 and EBITDA and Profit grew by 13.5 pct and 13.3 pct over same period. During FY25 the sales of the company jumped by 28.2 pct YoY to Rs. 2,842 mn. While EBITDA of the company grew by 25.1 pct YoY to Rs. 1014 mn while EBITDA margin dropped by 89 bps to 35.7 pct in FY25. During FY25, the company reported profit of Rs. 764 mn, which grew 21.5 pct YoY.

Key Risk

• A major warehouse fire in April 2025 caused inventory loss valued at about Rs 3.36 bn, significantly impacting stock and requiring insurance claims. Supply disruptions and additional costs may impact near-term financials and operations.
• Uncertainty regarding the real estate, infrastructure, and other related markets could adversely affect the demand for EPSL products.

Financial Performance

Peer Comparison Based on FY25

Valuation

Euro Pratik operates in the decorative wall panel and decorative laminates industry as a seller and marketer of Decorative Wall Panels and Decorative Laminates with 15.8 market share.  At the upper end of the price of Rs. 247, the issue quotes PE of 33.02x on FY25E post issue earnings. The issue looks fully priced. One can avoid this issue.

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