Emami Q1 Results Review — Dolat Capital Maintains 'Reduce' Rating On The Stock, Cuts Target Price
Emami is continuously improving its share in the new trade channels and is expected to accelerate sales, adds the brokerage.
(Source: Company website).
Emami's net sales declined by a mere 0.2% YoY to Rs 9.0 billion in Q1 FY26. Domestic business de-grew by 1% with 3% volume de-growth, while international business grew by 2% YoY (flat growth in CC terms). Core Domestic business (Ex-Talc/ PHP) grew by 6% with 3% volume growth.
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 Q1 FY26 revenue was below; however, Ebitda/adjusted profit after tax were in line with our estimates. Domestic revenue de-grew by 1.0% with 3.0% volume drop due to unseasonal rains, nonetheless, core domestic business (ex-Talc/ PHP) grew by 6% with 3% volume growth.
International business grew by 2.0% YoY. In constant currency terms, IB reported flat growth.
Organized channels like modern trade, E-commerce and institutional sales grew by ~6% with saliency improving by 190bps. Emami is continuously improving its share in the new trade channels and is expected to accelerate sales.
Though Q1 profitability was in line with our estimate, we have reduced our FY26/27E EPS estimates by 6.6/4.2% at Rs. 19.4/21.0 to factor in growth challenges across select categories.
We continue to value the stock at 30x FY27E EPS and reduce the target price to Rs 628 (Rs 656 earlier). Maintain ‘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.
