Buy Emami; target of Rs 900: Anand Rathi

Anand Rathi is bullish on Emami has recommended buy rating on the stock with a target price of Rs 900 in its research report dated November 10, 2024.

Broker Research

November 11, 2024 / 14:28 IST

Buy

26 Aug, 2025 12:21

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Anand Rathi's research report on Emami

With Rs8.9bn revenue (vs. the Street’s Rs9.1bn estimate) and EBITDA at Rs2.5bn (Rs2.5bn), Emami’s Q2 was broadly in line with estimates. Revenue growth could have been better but for the 9% y/y decline in TMC and Brillaire (D2C brand), owing to management transition, and Bangladesh’s turmoil hurting international business, which grew just 6% y/y (up 12% excl. Bangladesh). Management guided to double-digit revenue growth in H2, aided by better winter demand and launches. The EBITDA margin is expected to be better. We are optimistic about steady revenue/earnings recovery, aided by innovations, distribution expansion and scaling of D2C brands. We introduce FY27e and slightly tweak our FY25e/26e EPS.

Outlook

We retain our Buy rating, with a 12-mth Rs900 TP (Rs930 earlier), 37x FY27e EPS (42x FY26e EPS).

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