Buy Emami, target price Rs 580: BNP Paribas Securities

BNP Paribas Securities has buy call on Emami with a target price of Rs 580. The current market price of Emami Ltd. is Rs 473.85 .

Emami, incorporated in the year 1983, is a Mid Cap company (having a market cap of Rs 20903.89 Crore) operating in FMCG sector.

Financials

For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 855.74 Crore, up 9.06 % from last quarter Total Income of Rs 784.62 Crore and up 3.54 % from last year same quarter Total Income of Rs 826.45 Crore. Company has reported net profit after tax of Rs 182.29 Crore in latest quarter.

The company’s top management includes Mr.R S Agarwal, Mr.Debabrata Sarkar, Mr.S B Ganguly, Mr.P K Khaitan, Mr.Aditya V Agarwal, Mr.Y P Trivedi, Mr.K N Memani, Ms.Mamta Binani, Mr.C K Dhanuka, Mrs.Priti A Sureka, Mr.Sushil K Goenka, Mr.Prashant Goenka, Mr.Mohan Goenka, Mr.Harsha V Agarwal, Mr.R S Goenka, Mr.Amit Kiran Deb. Company has S R Batliboi & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 44 Crore shares outstanding.

Investment Rationale
In the international business, Emami continued to grow strongly, up 17% y-y in2QFY23 on the back of robust performance across most markets. The brokerage values Emami at target P/E of 30x Sep-24E EPS.

Promoter/FII Holdings
Promoters held 108.54 per cent stake in the company as of 30-Sep-2022, while FIIs owned 11.47 per cent, DIIs 54.02 per cent.