Varun Lohchab, Regional Head of Consumer at CIMB Equities told CNBC-TV18, "In case of Emami, existing price target is Rs 510. We will review it post the conference call today evening. We have a hold rating for the time being on Emami."
He further added, "The topline growth was obviously quite weak. We were anywhere anticipating a weak quarter with around 4-5 percent volume growth, but it turned out to be even weaker with around 1 percent volume growth for domestic business."
"Emami given the nature of the portfolio which is very seasonal in nature, you have these aberrations from time to time where you have volatility in topline growth. So this time winter centric portfolio did not do well. It was flat in value terms, whereas the non-winter centric portfolio still grew at 10 percent in value terms. So we need to see it," Lohchab said."
He further said, "I do not think Emami will probably report as bad a topline as they did in this quarter, things should be slightly better. But having said that even Emami is facing the slowdown impact as well. So it is difficult for volume growth for the company to go back in double digits anytime soon we believe."
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