Emami Ltd
Stock Snapshot
Price Performance
Vista Outlook
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
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 3,578 | 3,809 | 3,780 | 4,139 | 4,451 |
| Profit Before Tax (Cr.) | 776 | 856 | 856 | 915 | 1,007 |
| PBT Margin | 21.7% | 22.5% | 22.6% | 22.1% | 22.6% |
| Net Profit (Cr.) | 711 | 768 | 682 | 732 | 805 |
| Earnings Per Share | 16.3 | 17.7 | 15.6 | 16.8 | 18.4 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Goldman Sachs | ▲ Buy | 625 | 17-Sep-2026 |
| Moneycontrol | ▲ Overweight | nan | 17-Aug-2026 |
| Axis Securities | ▲ Buy | 550 | 07-Aug-2026 |
| ICICI Securities | ► Add | 420 | 05-Aug-2026 |
| Prabhudas Liladhar | ► Hold | 443 | 05-Aug-2026 |
| BNP Paribas | ▲ Buy | 520 | 09-Jul-2026 |
| Anand Rathi | ▲ Buy | 640 | 27-May-2026 |
| Elara Capital | ▲ Buy | 530 | 22-May-2026 |
| Jeffries | ▲ Buy | 620 | 22-May-2026 |
Company Overview
Show Company Profile
Emami Limited, together with its subsidiaries, manufactures and markets personal and healthcare products in India and internationally. The company offers antiseptic creams, body lotions, soaps, aloe vera gels, petroleum jellies, prickly heat powders, and all-season creams under the BoroPlus brand; cool oils and talcs under the Navratna brand; ayurvedic products for pain management, immunity, digestive health, and bone and joint health, as well as pain balms, healthcare, generics, and ethical products under the Zandu brand; ayurvedic medicinal oils, shampoos, and conditioners under the Kesh King brand; and brightening creams, brightening face washes, and oil clear face washes for men under the Smart And Handsome brand. It also provides pain balms under the Emami Mentho Plus brand; light hair oils under the Emami 7 Oils in One brand; prickly heat powders and sprays, soaps, and shower gels under the Dermicool brand; German skincare products under the Creme 21 brand; deodorants, eau de toilettes, shampoos, face and body washes, and shower gels under the HE brand; body sprays and perfumes, as well as face, hair, body, beard, and shaving products under The Man Company brand; and face serums, oil shots, powder face washes, and hair and pure oils under the Brillare brand. In addition, the company offers brightening creams under the Emami Pure Glow brand; cold creams under the Emami Malai Kesar Cold Cream brand; talcs under the Emami Golden Beauty Talc brand; fairness creams under the Emami Naturally Fair brand; hair colors under the Emami Diamond Shine brand; ayurvedic and science-led personalized hair and skin products under the Vedix brand; and aloe-based fruit beverages under the Alo Frut brand. It exports its products. The company was founded in 1974 and is headquartered in Kolkata, India.