BSE Code: | NSE Code: | ISIN: | Sector:

NSE
1146.30
Change Change %
-6.55 -0.57%

Updated:23 Oct, 2017, 15:53 PM IST

BSE
1138.00
Change Change %
-19.90 -1.72%

Updated:23 Oct, 2017, 15:41 PM IST

Research Report Detail

Brokerage
Analyst
Report Date Call Price@Call Target Price
Stop Loss
Current Status Time Horizon
Edelweiss
N/A
04-08-2017 Buy 1137.00 1221.00
N/A
Open Long (1Y)
04-08-2018

Edelweiss maintains buy on Emami

Emami's revenue (down 16.2% YoY) was in line, while EBITDA and PAT (down 45.6%/98.2% YoY, respectively) came lower than our estimates. While domestic sales fell 16% YoY (volume declined 18% YoY), international business and CSD slipped 19% and 20% YoY, respectively. EBITDA dip was aggravated by up-fronting of A&P spends (spurted 262bps YoY) to push new launches - but, we believe, this is the right approach. Also, Emami is confident of achieving 17-18% YoY revenue growth (14-15% volume growth) and outperforming peers over balance quarters of FY18. In spite of reducing FY18/19E EPS by 18.6%/8.8% YoY, we raise our target PE multiple to 35x (earlier 32x) on FY19E adjusted EPS with TP of INR1,221. Maintain 'BUY'.

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