Emmbi Industries Ltd. share price target

In Q4FY23, Emmbi witnessed a 30.9% QoQ growth in revenue, amounting to INR 1002mn. Although there was an 8.2% YoY decline, this can be attributed to the challenging global macroeconomic conditions, particularly in the European market. To counteract these difficulties, Emmbi has strategically shifted its focus towards other geographic regions, led to sequential growth.

In Q3FY23, Emmbi’s revenue saw a decline of 30.2% YoY/13.5% QoQ to INR 766mn, on account of subdued performance in its global markets on the back of challenging situation in these markets, especially in the European market. The company is shifting its focus more towards the domestic market to mitigate the risk of a slowdown and higher uncertainty in the international markets.

In Q2FY23, Emmbi’s revenue saw a decline of 21.5% YoY/16.3% QoQ to INR 885 mn. EBITDA has seen a decline of 21.8% YoY/7.7% QoQ to INR 98 mn. Despite a fall in absolute EBITDA numbers, EBITDA margin

In Q1FY23, Emmbi’s revenue grew 1.6% YoY to INR 1,058 mn. Though on QoQ basis revenues declined by 3.0%.

Plant shut-downs & unavailability of daily wage laborers affects operations Emmbi reported 25% YoY decline in volume in Q1FY21 on account of reduced operating days in the initial period of lockdown and the exodus of laborers to their native places at the end of the quarter. Due to lockdown Emmbi's plants were completely shut for first nine days of lockdown and then gradually started operating at 20%, which improved to 50% (from 24th April) and to 80% by 3rd May. Though performance of exports was better, domestic...

In our midcap universe of 11 companies, we expect Tata Chemical, VA Tech Wabag, Emmbi Industries and Kanpur Plastipack to be the most impacted stocks given that all these have revenue contribution in excess of 30-35% from the said geographies. We have envisaged the impact of Coronavirus (Covid-19) on our midcap coverage universe based on the revenue contribution from both the US as...

Value-added product mix, improving utilisation to drive profitability Emmbi has moved up the value chain with new capacity expansion in the domain of food grade FIBCs (primarily meant for exports) and consumer centric pond liner segment. This is a strategic play by the company to add value at multiple levels such as shift its revenue mix (FY19 - B2B:B2C ~84.4%:15.6%) towards B2C to expand EBITDA margins, strengthen brand image. In addition, the company has introduced innovative technologies such as rodent repellent, fire retardant and habitech technology (fish friendly...

Emmbi Industries (Emmbi) reported a healthy Q2FY19 performance Net sales in Q2FY19 were at | 73.3 crore, (up 21.8% YoY) EBITDA in Q2FY19 came in at | 10.3 crore with corresponding EBITDA margins at 14.0%, up 20 bps YoY PAT in Q2FY19 was at | 4.4 crore, up 18.9% YoY The company is putting its new capacity (food grade FIBC+ pond liner) to optimum use and is stated to attain peak capacity utilisation, going forward, in FY20E. Capacity utilisation in FY19E is expected at...

Emmbi Industries (Emmbi) reported a steady Q4FY18 performance Net sales in Q4FY18 were at | 68.4 crore (up 9% YoY) while EBITDA came in at | 9.7 crore with corresponding EBITDA margins at 14.1%, down 10 bps YoY. PAT in Q4FY18 was at | 4.1 crore, flat YoY For full year FY18, net sales were at | 254.5 crore (up 11.7% YoY). EBITDA was at | 35.2 crore (EBITDA margins at 13.8%, up 80 bps YoY) while PAT was at | 15.3 crore, up 20.5% YoY With expanded capacity in place and strong product demand, the...

25% of its total revenues from B2C business by FY20-22 by increasing their distribution networks. Company has improving its EBITDA margin driven by cost optimization program and stable input cost. Further, shift in product mix towards margin lucrative segments and strong brand equity ("Emmbi KrishiRakshak and Emmbi Jalasanchay) aided to growth in margins. Company aims to increase EBIDTA margins by 25 bps every quarter and have an EBIDTA margin of 16% by FY20 Further, company sees huge potential in the pond liners business, from 650 ponds in FY17 to 10,000 ponds by FY20. The company is amongst the top 3 players in the pond liner business in India. The advantage the company has over its peers is that company's pond liners take 60% less joint, use less material and cost of yield per square metre is low which makes it the most attractive player in pond liner business . Company has completed a 6000 MT capacity expansion, out of which 3600 MT is for water...

The company's net sales stood at INR 665.7 Mn which grew by 10.53% q-o-q and 19.88% y-o-y, owing to strong demand scenario in domestic market. Revenue of the company was in line with our estimates of INR 667.8 Mn. EBIDTA stood at INR 92.6 Mn which reported a robust growth of 39.29% y-o-y and 11.16% q-o-q. Company reported EBIDTA margin of 13.9%, which improved by 194 bps y-o-y and was in line with the margins of Q2FY18. Increase in margins on y-o-y basis was majorly on account of reduction in other cost and favorable product mix....

Emmbi Industries (Emmbi) reported a steady Q2FY18 performance Net sales in Q2FY18 were at | 60.2 crore (up 6% YoY) while EBITDA came in at | 8.3 crore with corresponding EBITDA margins at 13.8%, up 100 bps YoY. PAT in Q2FY18 was at | 3.7 crore, up 13% YoY Emmbi witnessed lower than anticipated sales during the quarter on account of transition involving GST, which also led to elongation of working capital cycle and consequent increase in short-term borrowings due to absence of refunds (export incentives)...

ICICI Securities Ltd | Retail Equity Research In Q4FY17, Emmbi Industries (Emmbi) reported a steady performance with sales growing 12.3% YoY to | 63.2 crore, EBITDA at | 9.0 crore (EBITDA margin 14.2%) and PAT at | 4.1 crore For FY17, sales and PAT were at | 229 crore and | 12.7 crore respectively. EPS for FY17 was at | 7.2/share, up 20% YoY Emmbi is all set to witness robust sales and profitability growth, going forward, post commissioning of its 3600 tonne pond liner...

ICICI Securities Ltd | Retail Equity Research Emmbi Industries (Emmbi) is a technical textile player manufacturing polypropylene based FIBCs (packaging material) and other utility products viz. water conservation tanks & farm pond liners Flexible intermediate bulk containers (FIBCs) are used in transportation of bulk commodities like chemicals, fertilisers, cereals, detergent, etc. Majority of FIBCs are meant for exports. Emmbi manufacturers both commoditised product & value added products...

ICICI Securities Ltd | Retail Equity Research In Q2FY17, Emmbi Industries (Emmbi) reported a healthy performance with sales up 9% YoY | 56.6 crore, EBITDA coming in at | 7.3 crore (EBITDA margin 12.8%) and PAT at | 3.3 crore For H1FY17, sales and PAT were at | 110 crore and | 6.3 crore, respectively. EPS for H1FY17 was at | 3.6/share, up 44% YoY Emmbi is on track to expand its capacity by 6000 tonne (existing capacity: 18200 tonne) that is due to be commissioned in FY17E with...

ICICI Securities Ltd | Retail Equity Research In Q4FY16, Emmbi Industries (Emmbi) reported robust performance with sales growing 14% YoY | 56.1 crore, EBITDA coming in at | 7.1...