Cement sale to add shine to Emami’s valuation
February 07, 2020 / 09:23 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
- Emami’s cement deal helps to raise Rs 5500 crore
- Funds to be utilized for debt repayment at the group level
- Deal potentially addresses a major investor concern pertaining to its FMCG business
- Emami’s valuation discount to FMCG majors to narrow
Emami group’s restructuring efforts bore fruit, with the sale of Emami Cement. While this should address debt overload at the group level, it potentially removes an overhang on the listed FMCG business. That should bring relief to investors of Emami.
Emami Cement is being...