Emami Ltd
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →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
| 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 |
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.