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Last Updated : Jul 15, 2019 03:04 PM IST | Source: Moneycontrol.com

Accumulate Emami; target of Rs 382: Prabhudas Lilladher

Prabhudas Lilladher recommended Accumulate rating on Emami with a target price of Rs 382 in its research report dated July 12, 2019.

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Prabhudas Lilladher's research report on Emami


We cut Emami's EPS estimate by 8.8% and 11% for FY20 and FY21 due to 1) muted demand environment in rural India (~50% of sales) 2) adverse impact of seasonality 3) structural growth issues in F&H and Boroplus and 4) margin pressures due to high Mentha prices. Although Navratna is on track and Kesh King has recovered post corrective action, F&H and Boroplus are unlikely to recover in the near term. We also note that new launches except 7 oils in 1 have failed to make any dent.


Outlook


We estimate 11% PAT CAGR over FY19-21 and value the stock at 28xFY21 EPS arriving at a target price of Rs382. (Earlier Rs475 at 31xFY21 EPS). Retain Accumulate.


For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



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First Published on Jul 15, 2019 03:04 pm
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