Sharekhan's research report on Emami
Emami posted strong performance in Q3FY2021.Revenue and PAT grew by 15% and 29%, respectively (OPM improved by 395bpsto 36.4%), led by broad-based growth across key categories. Domestic business sales volume grew by 13% against our and street expectation of 11%-14% growth. International business revenue grew by 26%, led by strong performance of MENAP and SAARC regions. Healthcare range, Boroplus range, and 7-in-one oils registered strong growth of 38%, 21%, and 32%, respectively, in Q3..
Management is confident of achieving double-digit volume growth with margin expansion in Q4. We maintain Buy with a revised PT of Rs. 570. The stock is currently trading at 23x its FY2023E EPS