Buy Emami; target of Rs 690: Mirae Asset Sharekhan

Mirae Asset Sharekhan is bullish on Emami has recommended buy rating on the stock with a target price of Rs 690 in its research report dated August 07, 2025.

Broker Research

August 11, 2025 / 12:20 IST

buy

26 Aug, 2025 12:21

Volume

Todays L/H

Mirae Asset Sharekhan's research report on Emami

Emami’s Q1FY26 performance was hit by unseasonal and early rains that led to a 17% decline in summer products, while pain management grew 17% y-o-y, aided by monsoon-led demand. Core domestic business (ex-talc/heat powder) grew 6% y-o-y, led by 3% volume growth. Consolidated revenue stood flat y-o-y, while higher other income and a lower tax rate led to 8% y-o-y growth in the adjusted PAT. OPM at 23.7%, slightly fell by 20 bps y-o-y. Emami continues to leverage innovation, distribution expansion, digital acceleration, and cost optimization to drive profitable growth going ahead. This coupled with a gradual demand recovery will further support growth in the coming months.

Outlook

Stock trades at 27x/25x its FY26E/FY27E EPS, respectively. We maintain a Buy with a revised PT of Rs. 690.

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