Prabhudas Lilladher's research report on Emami
HMN delivered a 3% decline in volumes, impacted by a shorter summer season and early onset of the monsoon, which impacted its summer-centric portfolio. Near-term outlook remains cautiously optimistic given 1) Repositioning of Smart & Handsome, backed by a strong innovation pipeline. 2) Revamp and relaunch of Kesh King, with a new proposition, packaging and pricing. 3) Stabilization of sales in The Man Company, with growth expected to ramp up in the coming quarters, driven by increasing market share in QC and online marketplaces. Although the summer portfolio may face headwinds in 2Q also, it will be partially neutralized by gains in pain management. Despite expected demand recovery, onset of winter and product placement will hold key to 2H26 growth.
Outlook
We estimate a 7.1% Sales CAGR and 10.7% PAT CAGR over FY25–FY27 as we cut EPS by 1 / 2.6% following growth pangs in 1Q26. We value the stock at 30x June’27 EPS, arriving at a target price of ₹683 (697 earlier). Maintain Accumulate.
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