Buy Emami; target of Rs 950: Emkay Global Financial

Emkay Global Financial's research report on Emami

We hosted Emami’s management team—Mohan Goenka (Director), Manish Gupta (Head of Sales), and Rajesh Sharma (Sr VP finance and IR)—and a group of investors, as part of our Emkay Connect initiative. We remain positive on Emami as we expect steady rebound in rural demand, better seasonality, and enhanced execution, backed by a proficient management team. For FY25, mgmt endeavor is to achieve double-digit domestic revenue growth via its strategy ahead to improve urban demand as a growth-transformation project. D2C brands are likely to drive ~30% domestic growth.

Outlook

We retain BUY on Emami and Rs950/sh Jun-25E TP, based on 44x P/E. Buoyed by competent management and favorable seasonality, Emami is one of the better rural recovery plays. Its improving financial performance grants comfort on valuations.

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