Buy Emami Ltd, target Rs 1255: Nomura

Nomura maintains a buy rating on Emami and has also raised its target price to Rs 1255 from Rs 1125 earlier. The product portfolio and Kesh King should assist growth this year.

As we enter FY17 the global brokerage firm believes that the worst may be over for Emami. It expects revenue growth of 19.8 per cent and 17.6 per cent in FY17F and FY18F respectively.

Nomura expects Kesh King to contribute 9 per cent of sales this year. The company is also a direct beneficiary of rural consumption revival which augers well for the stocks.