Emami's underperformance has not been caused by competitive intensity rather its own challenges like high dependence on wholesale distribution and volatility in seasons (summer and winter). The company has made healthy progress in the last 2 years in diversifying its distribution from wholesale (38% mix now vs. 52% earlier) to modern trade (8% mix now vs. 4% earlier) and direct reach (0.94mn stores vs. 0.63mn earlier). Recovery in macros (rural) coupled with a favorable season can lead to a rebound in Emami's performance. We remain believers, given favorable risk-reward and high probability for a consumer business to rebound. Emamis 4Q performance was weaker than expected. FY19 is the second consecutive year of muted EBITDA growth led by erratic seasons, disruption in trade and weak demand for its niche categories. Most negatives are priced-in and we expect performance to improve in FY20 led by (a) Healthy growth for summer portfolio, (b) Softening of RM costs and (c) Benefits from distribution expansion. We value the co. at 32x on Mar-21 EPS, arriving at a TP of Rs 506. Maintain BUY