Prabhudas Lilladher's research report on Emami
We increase our FY25/FY26 EPS estimates by 1.6/3.5% led by likely benefits from strong summer sales and normal monsoons. We believe favorable seasonal impact will be visible in Navratna, Cool Talc (Boroplus and Dermicool) and Pain Balms (Monsoons) in 1H25. Although Kesh King and male grooming (ex Man Company) remain under cloud, focus on shampoo and initiatives in male grooming can have some impact post 2Q25. Emami has launched 35+ new products in FY24 and the momentum is likely to continue. Emami has given optimistic outlook with double-digit topline growth, benign raw material prices, expected pickup in rural demand and favorable season. New age businesses of Man Company has achieved EBIDTA breakeven. Emami is looking at recovery in GT in both rural and Urban India as MT/ Ecom have sustained strong growth.
Outlook
We estimate 13.2% PAT CAGR over FY24-26 and value the stock at 24x FY26 assigning a value of Rs574 (Rs496 earlier 21x). Retain Accumulate.
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