NSE: EMAMILTD | BSE: 531162 | ISIN: INE548C01032

INDUSTRY : Personal Products

Emami Ltd.

Expensive Performer

229.90 5.30 (2.36%)

35.73% Fall from 52W High

Volume: 2.2M

NSEJul 03, 2020 15:31

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Durability score
60/100
High Financial Strength
Valuation score
13.5/100
Expensive Valuation
Momentum score
47.8/100
Technically Neutral
5S
16W
4O
6T


Emami Ltd.    
02 Jul 2020
229.90
2.36%
buy
Hold: Emami Ltd.
by Sharekhan
Target: 240 | Upside : 4.4%
Sharekhan
Emami Limited's (Emami's) Q4FY2020 performance was below our as well as street expectation with revenue and PAT declining by ~17% and ~25%, respectively, during the quarter. Lockdown at the end of the quarter affected pre-season sales of the summer portfolio, resulting in a sharp decline of 19% in domestic revenue (international business decreased by just 4%). Post acquiring required approvals, the company started manufacturing essential products from April 10, 2020, and gradually scaled up its operations to 100% in some of its plants. Trade and supply chain have normalised in few...
Emami Ltd. is trading above it's 100 day SMA of 214.6
Emami Ltd.    
30 Jun 2020
229.90
2.36%
buy
Sell: Emami Ltd.
by HDFC Securities
Target: 207 | Target met
HDFC Securities
We value Emami at 17x on FY22E EPS and arrive at a TP of Rs 207. Maintain REDUCE. Emami's 4QFY20 performance was disappointing as the co registered a 17% yoy decline in consolidated revenues. Boroplus, Male Grooming and Kesh King saw sharp revenue decline of 77/42/26% yoy. 4Q performance was impacted by weak category growth (even prior to Covid-19) and lockdown. Emami continued to gain market share in most of its portfolio. Co could not react fast enough to cut costs, resulting in EBITDA contraction of 36% yoy with EBITDAM declining by 569bps yoy. Co is now focusing on strategic launches and relaunches in hygiene and healthcare to drive revenue growth. Benign commodity inflation and expected savings of Rs 500-600mn from cost saving initiatives in FY21 could see margins expand for the co. However, Emami's portfolio is discretionary in nature and we expect recovery will take slightly longer than other FMCG cos. Hence, we cut EPS estimate by 6% for FY21E/FY22E.
Number of FIIs/FPIs holding stock fell by 34 to 143 in Mar 2020 qtr.
Emami Ltd.    
30 Jun 2020
229.90
2.36%
buy
Accumulate: Emami Ltd.
by Nirmal Bang Institutional
Target: 215 | Target met
Nirmal Bang Institutional
Promoter pledge overhang receding; all eyes now on operations Emami's 4QFY20 consolidated revenue declined by 16.8% YoY to Rs5.3bn (vs our est. 1.7% decline to Rs6.3bn). EBITDA declined by 36.6%YoY to Rs985mn (vs our est. 0.7% decline to Rs1.5bn). PAT before amortization declined by 21.2% to Rs941mn (vs our est. 7.9% growth to Rs1.3bn). Reported PAT declined by 55.4% to Rs234mn (vs our est. Rs667mn). Domestic business (including institutional) declined by 19% YoY for the quarter due to domestic volume declining by 19-20%. Revenue growth was affected by weak rural demand prior to the lockdown and followed by the supply chain disruption midMarch due to lockdown affecting the pre-season sales of the summer portfolio. Navratna, Pain management, Boroplus, Kesh King, Healthcare and Male grooming range declined by 12%, 5%, 77%,...
Emami Ltd. has an average target of 270.50 from 9 brokers.
Emami Ltd.    
29 Jun 2020
229.90
2.36%
buy
by Dolat Capital
Target: 241 | Upside : 4.8%
Dolat Capital
Emami's Q4FY20 results were below our estimate. Domestic business declined 19%, while IB posted 4% revenue de-growth. Weak rural demand coupled with liquidity concerns prior to lockdown; and supply...
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Number of FIIs/FPIs holding stock fell by 34 to 143 in Mar 2020 qtr.
Emami Ltd.    
29 Jun 2020
229.90
2.36%
buy
by Motilal Oswal
Target: 245 | Upside : 6.6%
Motilal Oswal
HMN recorded sales decline in most of the categories in YoY), Healthcare (-9% YoY), Male Grooming (-42% YoY), and BoroPlus (- 77%). Sales / EBITDA / Adj. PAT has witnessed a ~5% CAGR or lower for five years now, which is particularly disappointing given HMNs smaller size v/s highest domestic sales proportion among peers at around 50%), b) the announcement on the call that the group cement business sale would be concluded within the next fortnight, thereby sharply removing the pledge, and c) inexpensive valuations of 16x FY22 EPS. The company maintained leadership with volume market share at 66.4% as of MAT Dec19 The Male Grooming range declined 42% in 4QFY20 and 29% in FY20. Sales / EBITDA / Adj. PAT reported a ~5% CAGR or lower for five years now, which is particularly disappointing given HMNs smaller size v/s.
Promoters pledge increased to 89.24% of holdings in Mar 2020 qtr.
Emami Ltd.    
28 Feb 2020
229.90
2.36%
buy
by Motilal Oswal
Target: 310 | Upside : 34.8%
Motilal Oswal
28 February 2020 Demand is yet to pick up after weakening in the December quarter for both the company and the sector. Sales growth in many of HMNs key categories has been impacted in recent years due to rural slowdown (52% rural dependency), liquidity crunch (~40% wholesale contribution) and category growth issue (majorly problem-solving portfolio and not everyday use products with the former getting affected more in a weak demand situation). Demand environment remains bleak, similar to the December quarter when things had worsened sequentially and YoY for both Management appeared hopeful in the third-quarter post results call that up-stocking will happen in products like Navratna oil ahead of the summer season (usually begins in mid- Feb). However, even toward end-February, sales have not picked up owing to extended winter in several parts of the country. The problem solving nature of HMNs products and not everyday use has also affected offtake in a weak demand environment.
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Emami Ltd. has an average target of 270.50 from 9 brokers.
Emami Ltd.    
10 Feb 2020
229.90
2.36%
buy
Accumulate: Emami Ltd.
by Nirmal Bang Institutional
Target: 330 | Upside : 43.5%
Nirmal Bang Institutional
Emami's 3QFY20 consolidated revenues were flat YoY at Rs. 8.1bn (vs our est. 2% growth to Rs. 8.27bn). EBITDA grew by 0.2%YoY to Rs. 2.6bn (vs our est. 0.7% decline to Rs. 2.6bn). PAT before amortization grew by 3.1% to Rs. 2.15bn (vs our est. 3.9% growth to Rs. 2.17bn). Reported PAT grew by 4.9% to Rs. 1.44bn (vs our est. Rs. 1.55bn). Domestic business declined by ~2% YoY during the quarter with volumes down 2%. While overall volumes declined by 1% in the quarter. Revenue growth was impacted by underperformance of winter portfolio (down 13% YoY) and sharp decline in male grooming business (down 39% YoY) during the quarter. 60% of the portfolio (excluding the winter portfolio and Male grooming range) grew by 10 % in volume and by 13% in value in 3QFY20. Pain management,...
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Promoters pledge increased to 89.24% of holdings in Mar 2020 qtr.
Emami Ltd.    
08 Feb 2020
229.90
2.36%
buy
by HDFC Securities
Target: 445 | Upside : 93.6%
HDFC Securities
Emami's underperformance over the last 3 years has not been caused by competitive intensity rather its own challenges like (1) High wholesale dependence, (2) Core brands' dependence on seasonality, (3) Limited portfolio for premiumisation and (4) Pledge related disturbance. The company has made some progress in the last 2 years in diversifying its distribution from wholesale (~38% mix now vs. 52% earlier) to modern trade (9-10% mix now vs. 4% earlier) and direct reach (0.95mn stores vs. 0.63mn earlier). Besides, stake sale in Emami cement, will reduce the promoter pledge in Emami to ~25% vs. 72%. It will ease the pressure on promoters and will result in renewed strategy to revive domestic business. We remain bullish on Emami, given favorable risk-reward and potential rebound in domestic business. Emamis 3Q was muted across the board, with flashes of outperformance. Domestic business was impacted by delayed winter and persistent weakness in male grooming. However, 60% of domestic business (ex-winter portfolio and male grooming) posted 13/10% val/vol growth. Emami Group also sealed the sale of its stake in the Cement biz in Feb-20, which will significantly reduce promoter pledge. As a result, increased focus by the promoters on the domestic biz can fill the required gaps in domestic business in FY21. We value Emami at 30x on Dec-21E EPS, arriving at a TP of Rs 445. Maintain BUY.
Emami Ltd. has lost -27.13% in the last 6 Months
Emami Ltd.    
08 Feb 2020
229.90
2.36%
buy
by Motilal Oswal
Target: 355 | Upside : 54.4%
Motilal Oswal
Domestic volumes and revenue declined 2% YoY, while the international HMN recorded higher sales in Kesh King (+ 18% YoY), Navratna (+11% YoY), 7 Oils in One (+66% YoY), Pain Management (+13% YoY) and Healthcare (+4% YoY), but a decline in Male Grooming (-39% YoY) Rural segment is still under stress. However, the sharp reduction of pledge earlier this week after the sale of the group cement business and inexpensive valuations of 21.2x/18.6x FY21/22E EPS lead us to maintain Buy with a TP of INR355 (18% upside). BoroPlus Ayurvedic Antiseptic cream volume market share expanded by 120bp Pain management range grew by 13% in 3QFY20 and 5% in 9MFY20. Kesh King sales range grew by 18% in 3QFY20 and by 12% in 9MFY20. However, the sharp reduction of pledge earlier this week after the sale of the group cement business and inexpensive valuations of 21.2x/18.6x FY21/22E EPS.
Emami Ltd. is trading above it's 100 day SMA of 214.6
Emami Ltd.    
07 Feb 2020
229.90
2.36%
buy
Accumulate: Emami Ltd.
by Prabhudas Lilladhar
Prabhudas Lilladhar
Emami's outlook remain muted given 1) tepid consumer demand 2) structural issues in Male grooming and Pancharishta 3) untimely inventory push for non-winter products. A lot depends upon the timely onset of summer and trade inventory buildup for Navratna in 4Q. We remain cautious on Emami on 1) low growth in key categories like premium hair oil, male skin creams and Pancharishtha 2) slowdown in rural demand given high dependence (54-55%) and 3) limited success in categories beyond traditional strongholds. Benign input costs are likely to support...
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Emami Ltd. is trading above it's 100 day SMA of 214.6