Buy Emami; target of Rs 700: Motilal Oswal

Motilal Oswal's research report on Emami

Emami reported a flat consolidated revenue in 1QFY26 (vs. an est. of -3%), as growth in the core portfolio was offset by a sharp decline in the summercentric Talc and Heat powder. The overall domestic sales were flat in value terms and declined 3% in volume. The core domestic business (ex-Talc/Heat Powder) grew 6% YoY, led by 3% volume growth. The summer portfolio declined 17% YoY, impacted by an exceptionally high base (54% growth in 1QFY25) and early monsoons, with muted demand. International business grew 2% YoY (flat in constant currency), with softness in Bangladesh weighing on growth.

Outlook

We expect its margins to be sustained at the current levels. We reiterate our BUY rating on the stock with a TP of INR700 (premised on 30x Jun’27E EPS).