Sharekhan's research report on Emami
Emami’s Q2FY2023 operating performance was below our as well street’s expectation, affected by high base in pain management and healthcare segment, slowdown in the hair oil category, and higher input cost inflation. Revenue grew by 3% to Rs. 813.8 crore, while operating profit decreased by 30% y-o-y. Demand for winter products has picked up and management expects good recovery in Q3 sales. Raw-material prices have corrected substantially, which will help OPM to be higher in H2. Management targets 27% EBIDTA margin for FY2023 Management is eyeing double-digit growth in the medium term through improved growth in hair oil and skincare category, new recruitments through bridge packs in key categories, and expansion in distribution network (especially in rural markets). Better monsoon season could lead to revival in rural demand.
Outlook
The stock is currently trading at 25.7x/20.8x its FY2023/FY2024E earnings. We maintain Buy with an unchanged PT of Rs. 550.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
