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 487
Expected Upside 9.9%
Forecast Horizon 2 Years
Historical CAGR 14.2%
1,000 Invested 15-Aug-2006
Today's Value 14,321
Investment Period 20 Years

Stock Snapshot

Post Results Return
-1.8%
Neutral Market Reaction
1-Year Target Price
450
2-Year Target Price
487
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 Limited is navigating a complex landscape characterized by strong domestic growth and strategic acquisitions, while facing significant margin pressures due to rising input costs and geopolitical challenges. Management's focus on enhancing core brands and expanding into high-growth sectors like personalized beauty and wellness is expected to drive revenue recovery, with a reported 15% growth in consolidated revenues, primarily from a robust domestic market. However, the company is contending with temporary headwinds in rural demand and execution risks associated with its supply chain transformation. Vista's financial outlook reflects cautious optimism, anticipating continued revenue growth supported by strategic investments and a focus on digital capabilities, despite expected margin pressures. The personal care industry is stabilizing, with improving pricing power, which could benefit Emami's margin recovery in the long term. Over the next 12-24 months, key opportunities include leveraging digital channels and expanding high-margin product offerings, while watchpoints include persistent input cost inflation and geopolitical instability affecting international operations

👍 Why We Like This Stock

  • Strong domestic revenue growth of 20% indicates robust demand for core products
  • Strategic acquisitions in personalized beauty and wellness sectors enhance market positioning
  • Management's focus on digital transformation and AI-driven marketing is expected to drive future growth

Things To Watch Out For

  • Margin pressures from elevated input costs and geopolitical instability in West Asia pose significant risks
  • Temporary headwinds in rural demand may impact overall revenue recovery
  • Execution challenges related to supply chain transformation could hinder operational efficiency

Key Parameters

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

Financial Snapshot

Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 3,578 3,809 3,780 4,143 4,433
Profit Before Tax (Cr.) 776 856 856 917 1,005
PBT Margin 21.7% 22.5% 2264.6% 22.1% 22.7%
Net Profit (Cr.) 711 768 682 733 804
Earnings Per Share 16.3 17.7 15.6 16.8 18.4

Analyst Recommendations

Broker Recommendation Target Price Date
Anand Rathi ▲ Buy 640 27-May-2026
Elara Capital ▲ Buy 530 22-May-2026
ICICI Securities ► Add 420 05-Aug-2026
Jeffries ▲ Buy 620 22-May-2026
Moneycontrol ▲ Overweight nan 11-Jun-2026
Prabhudas Liladhar ► Hold 443 05-Aug-2026
Consensus Recommendation ► Hold
Consensus Target 443
Coverage 6 Analysts
Analysts' Viewpoint
Emami's strategic focus on scaling its D2C portfolio and preventive healthcare segments is driving volume growth, with significant traction in organized retail and digital-first brands. However, margin pressures persist due to rising input costs and geopolitical instability in West Asia. The company is pursuing acquisitions to enhance its market position, though execution risks remain. Recovery in international business and stabilization of input costs are anticipated catalysts for margin improvement and sustained growth.

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.