January 31, 2017 / 15:21 IST
Motilal Oswal's research report on Emami Among winter products, BoroPlus antiseptic cream sales grew by 13% YoY and moisturizing lotions sales by 10% YoY. Among other products, Balm sales declined 5% YoY. Kesh King grew only 2% YoY, but maintained volume market share at 29.8%. Navratna Cool oil sales declined 4% YoY. Fair and Handsome sales dropped sharply by 18% YoY. Zandu HCD fell 6% YoY, led by a 15% decline in Pancharishta sales (on a high base).
OutlookWe continue to like HMN, given its strong medium-term earnings visibility post the Kesh King acquisition (45% EBITDA margin business turning EPS-accretive in second year). The stock trades at 29.4x Dec-2018 EPS. We maintain Buy target price of INR 1,260 (36.5x Dec-2018 EPS, in line with three year average).
For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
Read More
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
