Buy Emami; target of Rs 320: Sharekhan

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Sharekhan's research repor on Emami

The company launched slew of new products (that contributed ~5% in Q1FY2021), brought in new business head for healthcare segment and a sales head to renew growth strategies in the coming years. Steady demand for health & hygiene products (that contributes ~43% of revenue) and raw material tailwinds will help Emami clock decent numbers in FY2021 and double-digit revenue and earnings growth in FY2022. Stock currently trades at a stark discount of 15.3x its FY2022E earnings compared to its historical average and hence risk-reward ratio is favourable as concerns ease.

Outlook

We upgrade Emami to Buy with a revised price target of Rs. 320 as headwinds of promoter pledges recede (reduced to 55% from 95% earlier) and management re-focuses on driving growth of consumer business.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More