Emami Ltd. share price target

Background: Emami is a FMCG company with niche focus on relatively under penetrated segments such as antiseptic cream, fairness cream, talcum powder, cooling oil, pain balm and pain reliever. Emami's power brands such as Navratna Oil, Boroplus Cream, Zandu & MenthoPlus Balm, Fair & Handsome, Boroplus Powder, Navratna Cool Talc, Fast Relief, SonaChandi & Zandu accounts for 75% of company's sales. Emami sales have grown at a CAGR of 38.5% (FY2010-20)....

While HMN's sales/volume growth at 15%/13% were healthy, they were below our expectations. However, record high EBITDA margin led to beat on our EBITDA and PAT forecasts. Near term outlook remains healthy for the Herbal portfolio as well as rural growth. This would elevate HMN's topline growth above the disappointing growth levels of ~3.7% in the five years ended FY20. The management has also guided for ~30% EBITDA margin going forward....

Most power brands are in good shape except F&H;, we are cautious on new launches despite encouraging initial response We are upgrading target price of Emami to Rs526 (Rs450 earlier) as we increase PE multiple from 26 to 28x (last 5-year average 38.6x, 25% discount to coverage universe) and rollover valuations to FY23. We believe Emami has...

We recommend a BUY on EMAMI LTD with a Target Price of Rs 413 an upside of 10% from CMP of Rs. 375 and Stop Loss Rs 355

Emami (HMN) posted a beat on all fronts in its 2QFY21 results. Importantly, (a) strengthening rural growth (50% of HMN's sales), (b) extremely strong health and hygiene sales, (c) initial good winter demand, and (d) the low winter season sales base of last year augur well for sales and earnings growth over the next few quarters. We remain bullish on the stock, despite two primary concerns. (a) The likely delay in pledge reduction to zero (earlier targeted by Mar'21; currently at ~40% levels) is disappointing. (b) There is no evidence of a structural...

We are changing FY21/22/23 EPS estimates by 9.3%, 1.1% and -3.6% and increase target price to Rs450 @26xSept21 EPS (Rs419 earlier, valuing at 25xJune22EPS). We believe Emami is in a sweet spot given 1) highest rural salience at 55% of sales 2) early onset of winter and low base for winter...

Emami's Q2FY21 results came ahead of our estimates. Domestic business jumped 13%, while IB posted 11% revenue growth in Q2. Ex-winter products (88% contri) reported 28% growth was encouraging performance. Kesh King and Pain management range recorded highest ever quarterly sales during the quarter....

We recommend a BUY on EMAMI LTD with a Target Price of Rs 325 an upside of 10% from CMP of Rs. 295 and Stop Loss Rs 280.

600mn savings from cost rationalization measures in FY21. Emami 1Q results were better due to 29% growth in Zandu and Boroplus even as rest of the portfolio was under pressure and declined 44%. Sales are bouncing back with double digit growth in July and outlook is improving led by strong demand for Immunity boosters, revival in Kesh king and Pain Mgt. Emami will also gain from low base in 2H21 and benign input costs. Although we would watch out for success of planned launches, we model 8.8% growth in sales and 11% in EBIDTA and 17.2% in PAT over FY20-23. We value the...