Accumulate Emami; target of Rs 571: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Emami with a target price of Rs 571 in its research report dated February 04, 2026.

Broker Research

February 05, 2026 / 13:03 IST

Accumulate

Prabhudas Lilladher's research report on Emami

HMN reported a growth of ~9.8%/9% in sales/volumes on strong winters, and normalization of channel inventory post GST led to disruption. Near-term outlook remains optimistic given 1) Healthy demand outlook for Q4 led by prolonged winters 2) Revival in rural demand with focus on small SKUs in shampoos and skin creams and 3) initial gains form revamp and relaunch of Kesh King, with a new proposition, packaging and formulation. Although prolonged winter might delay summer portfolio loading, overall revival in demand augurs will in coming quarters, sans seasonal and climatic variations. We have cut EPS estimates for FY27/FY28 by 4.4%/4.1% as we anticipate overall tax rate to increase to 18.3/20% in FY27/28.

Outlook

We estimate a sales/EBIDTA/EPS CAGR of 8.4/9.7/7.7% over FY26–28. We value the stock at 27x Dec’27 EPS, assigning target price of Rs571 (Rs582 earlier). Maintain Accumulate.

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