Buy Emmbi Industries; target of Rs 180: ICICI Direct

ICICI Direct's report on Emmbi Industries

Emmbi’s product profile can be classified into four main segments, i.e. speciality packaging (FIBC), advance composites (FIBC+ embedded property), water conservation products and agri products. In FY16, the company clocked net sales of Rs 207 crore, which comprising speciality packaging (39% in FY16, 48% in FY15), advance composites (43% in FY16, 36% in FY15), water conservation products (16% in FY16, 15% in FY15) and agri products (2.8% in FY16, 2.3% in FY15).

Outlook

With a robust growth trajectory amid healthy product demand and good promoter pedigree, we increase our target P/E multiple and introduce FY19E numbers. We now value Emmbi at Rs 180 i.e. 18x P/E on FY18E & FY19E average EPS of Rs 10.0.share. We maintain our BUY recommendation on Emmbi.