Buy Emami; target of Rs 950: Motilal Oswal

Motilal Oswal's research report on Emami

Emami reported 10% YoY sales growth in 1QFY25 (est. 8%). The domestic business grew 10% YoY, led by 9% volume growth. There was a sequential improvement in demand in the rural market. Harsh summer translated into strong demand for cooling products. The Navratna & Dermicool products posted robust 27% YoY growth. The healthcare segment reported 11% YoY growth led by new launches and strong traction on digital platform. 7 Oils in One, BoroPlus, and D2C portfolio reported 9%, 4%, and 23% YoY growth. Conversely, the severe summer hurt the pain management range (-7% YoY). Kesh King and male grooming dipped 15% and 5% YoY, respectively.

Outlook

We reiterate our BUY rating with a revised TP of INR950, based on 40x Jun’26E EPS (earlier 35x P/E multiple).