Prabhudas Lilladher recommended Accumulate rating on Emami with a target price of Rs 382 in its research report dated July 12, 2019.
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.
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.The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .