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Buy Emami: target of Rs 570: Sharekhan

Sharekhan is bullish on Emami has recommended buy rating on the stock with a target price of Rs 570 in its research report dated May 25, 2021.

June 10, 2021 / 11:15 AM IST
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Sharekhan's research report on Emami

Emami posted yet another quarter of strong performance, largely led by 39% volume growth in the domestic business (overall volume growth of 33%). However, the company witnessed a miss on margins, with OPM at 22.3% (versus expectation of 25%-27%), affected by dip in gross margins. Healthcare range grew by 45% in FY2021; Management is confident of growing it by 20%-22% in FY2022 due to likely improvment in penetration and strong traction to new launches. Increased contribution from new product launches, distribution expansion, and improved sales on channels such as e-commerce and modern trade will support overall growth in the near term.


Strong liquidity position (Rs. 350+ crore cash), improved dividend payout of 78%, and discounted valuation of ~24x to close peers make it a good pick. We maintain Buy with an unchanged PT of Rs. 570.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: May 27, 2021 12:45 pm

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