Emami shares hit over 3-month low; should you buy?

Shares of Emami retreated to their lowest level in three months on Tuesday after the company missed its ebitda estimates for the quarter ended December 31, 2017.

The company had posted a 9.56 per cent rise in consolidated net profit at Rs 147.08 crore in Q3FY18 over Rs 134.34 crore in Q3FY17.

While Q3 ebitda was up 2 per cent, it was below estimates due to the weak performance of a medicinal oil brand, PTI said, while quoting Macquarie. Ebitda figures of the company increased to Rs 264.68 crore during October-December 2017 from Rs 258.54 crore in the same period last year.


Brokerage firm Motilal Oswal said, “Emami’s volume growth of 6 per cent year-on-year (YoY) missed our estimate of over 12 per cent, despite a weak base.”

The scrip opened the day at Rs 1,210.45 and touched a high and low of Rs 1210.45 and Rs 1,135, respectively, eventually closing at Rs 1142.10, down 7.35 per cent.

However, Motilal Oswal maintained ‘Buy’ on Emami with a target price of Rs 1,654.