DINESH

Emami Ltd

Industry: Personal Care
Latest CMP 403
Today's Change ▲ 0.22%
52-Week High / Low 614 | 385
Price Date: 14-Aug-2026
Recommendation Buy
Target Price 507
Expected Upside 12.1%
Forecast Horizon 2 Years
Historical CAGR 14.2%
1,000 Invested 17-Aug-2006
Today's Value 14,289
Investment Period 20 Years

Stock Snapshot

Post Results Return
-1.8%
Neutral Market Reaction
1-Year Target Price
465
2-Year Target Price
507
52-Week High / Low
614 / 385
20-Day Return
-0.5%
Market Cap (Cr.)
17,604
Current PE
26.1
P/BV Ratio
6.1
Dividend Yield
1.9%
Industry PE
39.0

Price Performance

Basis of our Recommendation

Emami Ltd is currently navigating a transitional phase marked by strategic investments and a focus on high-margin growth areas, such as personalized beauty and wellness. Management's commentary highlights a cautious optimism, driven by a recovery in domestic revenue and a pivot towards organized retail and quick commerce. However, the company faces margin pressures due to elevated input costs and geopolitical instability affecting its international operations. Vista's financial outlook reflects an expected revenue recovery, with a target price of ₹450, indicating an upside of approximately 11.57%. The anticipated margin recovery hinges on successful integration of recent acquisitions and stabilization of supply chains. Industry dynamics, including improving pricing power and strong brand loyalty, support Emami's growth trajectory, although the mature market presents challenges. Over the next 12-24 months, key opportunities include leveraging digital capabilities and expanding into underpenetrated markets, while watchpoints include potential execution risks and ongoing inflationary pressures

👍 Why We Like This Stock

  • Strategic investments in high-margin segments like personalized beauty and wellness are expected to drive future growth
  • Recovery in domestic revenue, supported by strong brand loyalty and a shift towards organized retail, enhances market positioning
  • Management's focus on digital capabilities and e-commerce expansion presents significant growth opportunities

Things To Watch Out For

  • Margin pressures persist due to elevated input costs and geopolitical instability affecting international operations
  • Execution risks related to the integration of recent acquisitions could impact profitability
  • The mature market limits rapid growth opportunities, necessitating constant adaptation to changing consumer preferences

Key Parameters

Balance Sheet Strength
Conservatively Financed
Market Share
Stable
Industry Outlook
Improving
Analyst View
Buy
Dividend History
Consistent
FII Holdings
Reducing

Financial Snapshot

Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 3,578 3,809 3,780 4,148 4,484
Profit Before Tax (Cr.) 776 856 856 922 1,029
PBT Margin 21.7% 22.5% 2264.6% 22.2% 22.9%
Net Profit (Cr.) 711 768 682 737 822
Earnings Per Share 16.3 17.7 15.6 16.9 18.8

Analyst Recommendations

Broker Recommendation Target Price Date
Anand Rathi ▲ Buy 640 27-May-2026
Axis Securities ▲ Buy 550 07-Aug-2026
BNP Paribas ▲ Buy 520 09-Jul-2026
Elara Capital ▲ Buy 530 22-May-2026
Goldman Sachs ▲ Buy 655 30-Jun-2026
ICICI Securities ► Add 420 05-Aug-2026
Jeffries ▲ Buy 620 22-May-2026
Moneycontrol ▲ Overweight nan 17-Aug-2026
Prabhudas Liladhar ► Hold 443 05-Aug-2026
Consensus Recommendation ▲ Buy
Consensus Target 501
Coverage 9 Analysts
Analysts' Viewpoint
Emami is in a transitional phase, focusing on strategic investments and portfolio diversification to drive growth. The company is capitalizing on high-growth assets like Axiom Ayurveda and IncNut Digital, while expanding into organized retail and quick commerce to capture premium consumer segments. Despite strong domestic momentum, Emami faces challenges from geopolitical instability in West Asia, input cost inflation, and integration-related expenses. Future growth is contingent on stabilizing international supply chains and successful integration of acquisitions, with expectations for margin recovery as these factors normalize.

Company Overview

Show Company Profile

Emami Limited manufactures and markets personal and healthcare products in India and internationally. The company offers antiseptic cream, body lotion, prickly heat powder, petroleum jelly, soaps, aloe vera gel, and all-season cream under the BoroPlus brand; oil and cool talc products under the Navratna brand; and ayurvedic products for pain management, immunity, digestive health, and bone and joint health, as well as healthcare products comprising hair growth vitalizers, skin elixirs, organic apple cider vinegar, cough syrup, herbal tea, health juices, honey, and herb tablets under the Zandu brand. It also provides oils, conditioners, shampoos, and ayurvedic capsules under the Kesh King brand; brightening creams, and brightening and oil clear face washes for men under the Smart And Handsome brand; balms under the Mentho Plus brand; hair oils under the Emami 7 Oils in One brand; prickly heat powders under the Dermicool brand; moisturising creams and body lotions under the Creme 21 brand; deodorants, eau de toilettes, shampoos, face washes, and shower gels under the HE brand; and body sprays and perfumes, beard and shaving products, body and hair care products, face washes, gift sets, and tools and accessories under The Man Company brand. In addition, the company offers face serums, oil shots, powder face washes, and hair and pure oils under the Brillare brand; hair colors under the Emami Diamond Shine brand; talc under the Emami Golden Beauty brand; herbal fairness cream under the Emami Naturally Fair brand; cold cream under the Emami Malai Kesar Cold Cream brand; and deep moisturizing cream under the Emami Pure Glow brand. Emami Limited was founded in 1974 and is headquartered in Kolkata, India.