Emami shares jump 5% after Goldman Sachs sees up to 60% upside, projects strong earnings growth recovery

The shares of Emami jumped nearly 5 percent on November 27 after international brokerage Goldman Sachs issued a bullish call for the stock, retaining its ‘Buy’ call.

The shares of the company rose to Rs 538.45 apiece on Thursday, the highest level seen by the stock in 14 sessions. The stock has now extended gains for the second consecutive day.

 

Goldman Sachs on Emami:

Goldman Sachs gave a price target of Rs 825 apiece for the shares of Emami, implying an upside potential of nearly 60.5 percent over the stock's previous closing price of Rs 514.05 apiece. In its note, the international brokerage said that it expects the FMCG major to see a strong earnings recovery over the next four quarters, which could drive upside in the stock, CNBC-TV18 reported.

It noted that Emami's growth and valuations relative to the sector appear disconnected, while earnings volatility is masking an otherwise reasonable growth trajectory. This is impacting the company's valuations, the business news channel further said.

The brokerage estimates 10 percent year-on-year earnings growth for Emami in the second half of fiscal year 2026 on expectations of cooler-than-average temperatures, which is likely to boost the company's winter portfolio.

Goldman Sachs however listed out four downside risks to its bullish call, which includes overexposure to dominant niche segments, unexpected management team transitions, greater competitive intensity in niche segments, and adverse weather conditions.

 

Elara Capital on Emami:

Earlier this month, Elara Capital upgraded its rating on Emami shares to 'Buy' from 'Accumulate', with a target price of Rs 700 apiece. This implies an upside potential of more than 36 percent from the previous closing price.

The domestic brokerage noted that the firm's Q2 performance was impacted by GST-related trade disruptions and extended monsoons, leading to a sharp domestic decline. However, management expects a strong rebound from Q3, aided by recovery in winter-loading, improved rural traction, and portfolio relaunches. "Margins are set to recover in H2FY26 as volumes normalize and operating leverage improves," it said.

 

Emami Q2 Results:

Emami on November 10 reported a consolidated net profit of Rs 148 crore in Q2 FY26, marking a 30% YoY fall from the Rs 212.66 crore net profit reported in Q2 FY25. The firm’s revenue from operations meanwhile fell 10% YoY to Rs 798.51 crore.

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(With inputs from Reuters)

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