Buy Emami: target of Rs 635: Sharekhan

An Edelweiss research report for Q4FY21 says road tonnage continued to improve, evident in e-way bill generation (up 6% QoQ) and improved core trucking rentals. “We estimate tonnage would increase by three–five percent for truckers. Asset-light plays Mahindra Logistics and TCI Express remain our preferred picks due to their ability to scale up/down as the environment demands,” the report said. Edelweiss is bullish on Blue Dart Express due to the pandemic-induced boom in e-commerce and its leaner cost structure. It has retained a ‘buy’ call on Mahindra Logistics, TCI Express and Blue Dart Express.

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26 Aug, 2025 12:21

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Healthcare category grew by 45% in FY2021; management confident of growing it by 20-22% in FY2022 on improved penetration and strong traction to new launches. Liquidity remains strong as Emami’s cash & cash equivalents stand at Rs. 350 crore. Dividend payout improved to 78%. Return ratios remained strong with RoE and RoCE of 37.5% and 42.5%, respectively. Stock has given handsome returns of 2.6x, outperforming broader indices. Current valuations of 25x its FY2023E EPS remain attractive in FMCG space.

We maintain a Buy on Emami with a revised price target of Rs. 635. Strong growth prospects and receding risk of promoter’s pledging make it a better pick in the FMCG space.

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