FMCG Stocks to BUY: Emami Ltd (NSE: EMAMILTD) is a giant personal care company. The company was established in 1974. It primarily manufactures and sells personal as well as medical products.
There are more than 450 products. Its trusted and powerful brands are Navratan, BoroPlus, Fair & Handsome, Zandu Balm, and Keshking.
After the Q2 results, this stock is recommended to buy and a big target has been given. This stock is at Rs 677.
Emami Q2 Results
Emami Ltd’s operational revenue in Q2 was Rs 891 crore with a jump of 3%. Gross margin improved by 60 bps to 70.7%. EBITDA registered a jump of 7% and stood at Rs 250 crore.
Net profit was Rs 213 crore with a jump of 19%. Emami Ltd will increase its investment in Helios Lifestyle from 50.4% to 98.3 %.
An interim dividend of 400% per share has also been announced. 11 new products were launched in Q2. The demand for winter products is predicted to grow due to the wintertime.
Emami Share Price Target
Centrum Broking has recommended buying Emami shares after the results. A target of Rs 900 has been given. This is 34% to 35% more than the current average.
The 52-week highest for this stock is around 860 rupees which is also the record high. The stock hit this peak in September. The stock was trading with a gain of 1.23% and the price was 690 rupees at noon.
The stock made a low of Rs 632 in October and a low of Rs 660 in November. The research report said that double-digit growth is expected in H2.
International business growth was good in Q2 while domestic business growth was sluggish. The benefit of new product launches is expected in the second half.
Quick Fact
| Company name | Emami |
|---|---|
| Established | 1974 |
| Category | Personal care and medical products |
| Notable brands | Navratan, BoroPlus, Fair & Handsome, Zandu Balm, Keshking |
| Total products | More than 450 |
| Stock price | 677 (0.33% up) |
| Target price | ₹900 |
| 52-week high price | ₹860 (September) |
| October lowest price | ₹632 |
| November lowest price | ₹660 |
| Operational revenue (Q2) | ₹891 crore |
| Revenue growth (Q2) | 3% |
| Gross margin (Q2) | 70.7% |
| Gross margin growth (Q2) | 60 bps |
| EBITDA (Q2) | ₹250 crore |
| EBITDA growth (Q2) | 7% |
| Net profit (Q2) | ₹213 crore |
| Net profit growth (Q2) | 19% |
| New products launched in Q2 | 11 |
| Expected growth for winter products | High |
| Investment increase in Helios Lifestyle | From 50.4% to 98.3% |
| Interim dividend | 400% per share |
| Possible target price | ₹900 |
| Potential price growth | 34% to 35% |
| International business growth (Q2) | Good |
| Domestic business growth (Q2) | Sluggish |
| Expected growth (H2) | Double-digit |
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