Prabhudas Lilladher has given Accumulate recommendation for Emami with a target price of Rs. 611 in its research report issued on May 13, 2022

Prabhudas Lilladher’s research report on Emami

Emami 4Q results were broadly in line with flat domestic volumes and YoY margin dip of 30 bps to 62.4%. Near term outlook remains intact due to low base in 1Q and strong heat wave even as rural sentiments are likely to recover with a lag (mostly in 2HFY23). Growth outlook remains positive with 1) Strong traction in summer portfolio 2) Management guidance of double digit revenue growth in international business 3) expanding reach in MT & ecommerce platforms in both D2C and e-B2B segments 4) revamped male grooming range & fair & handsome and 5) increasing ad-spend to gain market share. We believe margins will come under pressure in 1H23 due to inflation in LLP, Rice bran oil and packaging despite 4.5% increase in product prices (ex LUP). HMN plans to build on digital first brands like Navratna therapy, Kesh King onion range and Crème 21 products, although it will not have any significant impact in near term.


We estimate 11% PAT CAGR over FY22-24 and value the stock at 29x Mar24 EPS (earlier 30xDec23) and assign a value of Rs611/share (Rs 607 earlier). Retain Accumulate.

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