Buy Emami; target of Rs 1202: Edelweiss

Edelweiss' research report on Emami

Emami’s Q4FY17 revenue (fell 4.4% YoY), EBITDA (fell 4.7% YoY) and PAT (grew 1.5% YoY) came in line with our estimates. Domestic sales grew 3% YoY with volume dip of 1.5% YoY (grew 0.2% YoY in Q3FY17) impacted by trade disruption post DeMon, especially wholesale and rural where Emami has higher saliance.

Outlook

Going ahead, Emami’s growth will be led by ramp up in new launches and it remains key beneficiary of recovery in rural demand (rural contributes 50% to revenue). Maintain ‘BUY’.