Emami Ltd. share price target

We value Emami based on P/E of 32x on Sep-20 EPS to arrive at a TP of Rs 547 (earlier Rs 561). We maintain BUY. Emami reported a weak but in-line quarter marked with seasonality, trade challenges and a heavy base (revenue/EBITDA growth of 14/15% in 2QFY18) of GST restocking. Emamis discretionary portfolio is yet to see a pick-up in consumption post demonet. Revenues were flat (exp. -2%) with 4% volume contraction (exp. -2%). EBITDA/APAT grew by -6/-12% (exp. -13/-13%).

Revenue fell by 0.42% to Rs. 614.38 Cr in Q1FY19 when compared to the previous quarter. Emami Ltd Q1FY19 results Comment

We value Emami based on P/E of 36x on Jun-20 EPS to arrive at a TP of Rs 634 (earlier Rs 627). We maintain BUY. Emami reported an in-line quarter marked with partial recovery, supported by an extremely favourable base (-18% in 1QFY18). Consolidated revenue grew by 19% (exp. 17%) driven by 16% volume growth (in-line). EBITDA/APAT grew by 54/42% (exp. 54/45%).

Sector: FMCG /Mid-Cap | Earnings Update 1QFY19 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 and cash PAT have grown at a CAGR of 11.4% and 11.3% respectively (FY1217). Geographical breakup of sales: North (29%), West (27%), South (23%) and East (21%). Export contributes ~10.4% of total revenue. Company has 3,000+ distributors,...

Consolidated revenue on like-to-like (LTL) basis grew 19% YoY, with volume growth of 16% YoY. leading to LTL sales growth of 21%. EBITDA margin a percentage of sales (-380bp YoY) and other operating expenses were lower. Wholesale channel contributed to 40% of turnover in 1QFY19; (2) Management is confident of double-digit volume growth for the full year, particularly if the winter season is favorable. Changes to the model have resulted in 2.5%/3.2% cut in FY19/FY20E EPS. Wholesale channel normalization is highly positive for HMN. Before demand and supply-side disruption due to demonetization/GST implementation, up to 1HFY17, HMN was the most consistent performer even when other players with high rural exposure had started to slow down. Problem-solving nature of a large part of its portfolio and low penetration/ room for distribution expansion in most categories means that in a steady state environment it will outperform peers. Innovation pipeline and boost growth prospects further.

Emami's revenue grew by 19%, 4% below our estimate, led by a weak performance of Kesh King, Male Grooming and International business. EBITDA grew by 54%, in line with our estimate due to margin expansion while Adjusted PAT of Rs704mn was 9% below...

Emami is a leading FMCG player in India, operating in certain attractive segments such as skin care and hair oil. The company is promoted by Kolkatabased...

We value Emami based on P/E of 36x on Mar-20 EPS to arrive at a TP of Rs 1,230. We maintain BUY. Emamis consolidated revenues grew by 12% on a like-like basis (in-line) driven by 9% volume growth. We were surprised with EBITDA/APAT decline of -3/-5% vs. expectation of 9/3% respectively.

Emami Ltd Q3FY18 results comment Revenue rose by 20.46% to Rs. 756.64 Cr in Q3FY18 when compared to the previous quarter

We maintain BUY. Emami disappointed us on revenue growth and EBITDA margins. Net revenue was up 6% at Rs 7.6bn. Like-to-like revenue growth was slow at 10% (6% volume growth) vs. expectation of 17%. Kesh King and Health Supplements revenue contracted by 19% and 2%, impacting domestic performance. International posted healthy 16% growth, led by favorable base. EBITDA and APAT were up 2% and 4% respectively.