Buy Emami, says SP Tulsian

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Buy Emami, says SP Tulsian

Buy Emami, says SP Tulsian, sptulsian.com.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See previous views by SP Tulsian See what other Experts & Brokerages are saying about Emami See messages about Emami

Buy Emami , says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "Emami is a fastest growing FMCG company which is engaged in health, personal care and beauty care products. They have total product portfolio of 270 products. This is the only company which has top brand ambassadors, bollywood stars like Amitabh Bachchan, ShahRukh Khan and cricketers like Dhoni etc. So, this is has been their marketing strategy."

He further added, "The stock has corrected because of the unfortunate incidence at AMRI Hospital and the directors of company have been arrested. I don't think that will reflect on the working of this company in any way. Sometimes when there is this kind of knee-jerk reactions coming in into the stock price, it makes a good entry point."

"If one takes a call based on their FY13 earnings, then the share is available at a PE multiple of close to about 20. The only caveat is that one has to be little careful that the stock corrected yesterday and is ruling at about Rs 355-356, one can set a price target of about Rs 340 which is not unlikely to get in this market because that is very much possible."

"For FY11 they had topline of Rs 1,100 crore with an EPS of Rs 15 plus. The best part of the company is that they have presence in 65 countries. Overseas they are present in the Middle East, Africa and SAARC countries where the growth for all their products is high. That makes this company quite good at these current levels considering their distribution network, 3,500 dealers and professional management for all their products is in place. All this makes it as a very good buy. If one can keep a view of about one year, I am quite confident that the share can move to close to about Rs 500."