Khambatta Securities has given Buy recommendation for Emami with a target price of Rs. 657 in its research report issued on Feb 09, 2022
Khambatta Securities’ research report on Emami
Emami reported modest growth in 3Q FY22 as operating revenues increased by 4% y-o-y to ₹ 972 crores from a relatively higher base of 15% growth in 3Q FY21. Domestic, International and Institutional businesses grew by 3%, 7% and 16 % y-o-y, respectively during the quarter. Sales for the Kesh King range remained flat while the Boroplus range witnessed a marginal growth of 2% during 3Q FY22. The Pain management and Navratna ranges grew by 7% and 11%, respectively, while Healthcare declined by 6%. EBITDA for the quarter was flat as it grew by 12.6% y-o-y in 9M FY22. EBITDA margin declined by ~130 bps y-o-y due to increase in key raw material prices. Net profit for the quarter stands at ₹ 219.5 crores, registering a growth of 5% y-o-y. Net profit growth in 9M FY22 was 31.5%.
We maintain a BUY with a target price of ₹ 657 based on P/E of 34x FY24E EPS, informing a 32% upside from current levels.
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At 17:30 Emami was quoting at Rs 499.05, down Rs 2.55, or 0.51 percent.
It has touched an intraday high of Rs 502.90 and an intraday low of Rs 493.00.
It was trading with volumes of 21,050 shares, compared to its thirty day average of 16,813 shares, an increase of 25.20 percent.
In the previous trading session, the share closed up 1.10 percent or Rs 5.45 at Rs 501.60.
The share touched its 52-week high Rs 621.35 and 52-week low Rs 443.00 on 24 August, 2021 and 01 March, 2021, respectively.
Currently, it is trading 19.96 percent below its 52-week high and 12.26 percent above its 52-week low.
Market capitalisation stands at Rs 22,183.46 crore.