Motilal Oswal's research report on Emami
80% of the portfolio comprises high -demand problem - solving products, and the remaining 20% is discretionary products. This insulates the company from volumes risk in an adverse consumer environment. n Penetration is low in many categories. We note that HMN is the dominant player in its leading categories , which put s it at the for efront to drive category growth.
Outlook
Valuations at 31.6x FY19E EPS are inexpensive relative to peers. We like the company’s healthy long- term earnings growth prospects and return ratios in the mid -30s. We thus maintain our Buy rating with a target price of INR1,265, implying 18% upside to CMP. For all recommendations report, click here
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