Emami Q1 Review - Subdued Result Trend Continues: Motilal Oswal

Emami Q1 Review - Subdued Result Trend Continues: Motilal Oswal

<div class="paragraphs"><p>Emami Ltd.'s namesign and logo. (Source: Company website)</p></div>
Emami Ltd.'s namesign and logo. (Source: Company website)

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Emami Ltd.’s overall volume growth in Q1 FY23 stood at 9.6% YoY, while it was 2.4% ex-Dermicool (merged from this quarter). The base of healthcare business along with pain management weakened (versus good growth in other segments) in Q1.

However, it is likely to be less challenging in subsequent quarters. According to the management, material cost pressures are likely to persist for some more time.

It is heartening, though, that Emami is investing on growth. Its ad-spends-to sales ratio is expected to increase by over 100 basis points in FY23 and investments in Project Khoj (to augment rural distribution) will also continue.

While sales growth continued to be unimpressive for a company of its size (with a five-/three-/two-year compound annual growth rate of 5.1%/5.8%/9.7%, respectively), the trend is getting relatively better. Emami's valuations are also inexpensive.

Click on the attachment to read the full report:

Motilal Oswal Emami Q1FY23 Result Update.pdf


This report is authored by an external party. BQ Prime 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 BQ Prime.

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