Buy Emami; target of Rs 956: Firstcall Research

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26 Aug, 2025 12:21

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Firstcall Research report on Emami“Emami Ltd was established in the year 1978, as Himani Ltd (incorporated as a Private Limited Company in 1949) had become sick unit and was up for sale. Himani, almost a 100 year old company with good brand equity in Eastern India and a well laid out factory in Kolkata, was producing a number of cosmetics. Ten years after commencement of the company, it launched their first flagship brand Boroplus Antiseptic Cream under the Himani umbrella in 1984. Many additional brands followed Boroplus including Boroplus Prickly Heat Powder which came as a brand extension of the mother brand. Emami brands started selling in all states of North, East and West India. Today Boroplus is not only the largest selling Antiseptic Cream in India but also in Russia, Ukraine, and Nepal. In 1998, Emami Ltd was merged with Himani Ltd and its name was changed to Emami Ltd as per fresh certificate of incorporation dated September 1, 1998. Emami has been in the health, beauty and personal care since the last 35 years and has sustained its prominent position in Ayurvedic products. About 80% of the Company’s production comes from tax exempt zones. The company has ultra modern manufacturing facilities at Kolkata (West Bengal), Abhoypur and Amingaon (Assam), Panthnagar, Baddi (Himachal Pradesh), Dongri, Silvassa, Vapi. It has adopted the Total Quality Management system and all its manufacturing facilities have received cGMP and ISO 9001:2000 certifications. The Amingaon unit received “Par Excellence Award” and Abhoypur unit received “Excellence Award” in the All India Competition on “National Convention on Quality Circles” conducted by National Quality Council. Emami group has grown in India with presence in major sectors of FMCG, real estate, hospitals, retail, newsprint manufacturing, pharmacy chain, contemporary art, edible oil and biodiesel.” “At the current market price of Rs. 810.10, the stock P/E ratio is at 39.96 x FY15E and 36.24 x FY16E respectively. Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs. 20.27 and Rs. 22.35 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 13% and 17% over 2013 to 2016E respectively. On the basis of EV/EBITDA, the stock trades at 30.99 x for FY15E and 28.15 x for FY16E. Price to Book Value of the stock is expected to be at 17.28 x and 15.47 x respectively for FY15E and FY16E. We recommend ‘BUY’ in this particular scrip with a target price of Rs.956.00 for Medium to Long term investment,” says Firstcall Research report.  

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