IIFL is bullish on Emami and has recommended buy rating on the stock with a target of Rs 860 in its June 24, 2010 research report.
"Emami is investing in a number of modern systems and processes to be ahead of the curve as its scale expands rapidly. The company is extending SAP linkage to over 300 distributors covering c50% of its turnover, outsourcing distributor salesmen to a professional third party, and is recruiting over 300 salesmen to increase its rural coverage. These steps enhance our confidence in the management's determination to sustainably build a significantly larger consumer business. We estimate Emami's revenues will register 18% CAGR over FY10-13ii, driven by 25-50% CAGR in revenues from international business and skin-care brands including recent innovations. We retain buy with a target price of Rs 860, based on 23x 1-year forward earnings," says IIFL research report.
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