Emami Q4 Results Review: Dolat Capital Maintains 'Reduce' After Recent Stock Run-Up, But Hikes Target Price

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Dolat Capital Report

Emami Ltd.’s Q4 FY25 revenue was in line; however, Ebitda and adjusted profit after tax were below our estimates. Domestic business revenue grew by 11.0% led by 7.0% volume growth, while international business grew by 6.0% YoY. In constant currency terms, IB reported 5% growth.

Organized channels like Modern Trade, E-Commerce, and Institutional sales contributed 27.6% to domestic business, a 140bps increase in FY25. Emami is continuously improving its share in the new trade channels and is expected to accelerate sales.

Though Q4 profitability was lower than estimate, we have increased our FY26/27E EPS estimates by 1.5/1.8% at Rs. 20.8/21.9 to factor in the increase in other income. Valuing the stock at 30x FY27E EPS, we have increased our target price at Rs 656. Considering the recent run-up in the stock price, we retain our ‘Reduce’ rating.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.