Moneycontrol
Jul 14, 2017 04:01 PM IST | Source: Moneycontrol.com

Buy Emami; target of Rs 1265: Motilal Oswal

Motilal Oswal is bullish on Emami has recommended buy rating on the stock with a target price of Rs 1265 in its research report dated July 13, 2017

Buy Emami; target of Rs 1265: Motilal Oswal

Motilal Oswal's research report on Emami

80% of the portfolio comprises  high -demand problem - solving products, and the  remaining 20% is discretionary products. This insulates the company from  volumes risk in an  adverse consumer environment. n Penetration is low in many categories.  We note that HMN is the dominant  player  in its leading categories , which  put s it at the for efront to drive category  growth.


Outlook

Valuations at 31.6x FY19E EPS are inexpensive relative to peers. We like the  company’s healthy long- term earnings growth prospects and return ratios in the  mid -30s. We thus maintain our  Buy rating with a target price of INR1,265,  implying 18% upside to CMP.

For all recommendations report, click here


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