Buy Emami, target price Rs 610: Centrum Broking

Centrum Broking has buy call on Emami with a target price of Rs 610. The current market price of Emami is Rs 411.5.

Emami, incorporated in the year 1983, is a Mid Cap company (having a market cap of Rs 18186.41 Crore) operating in FMCG sector.

Emami key Products/Revenue Segments include Personal Care and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 989.58 Crore, up 15.64 % from last quarter Total Income of Rs 855.74 Crore and up .11 % from last year same quarter Total Income of Rs 988.48 Crore. Company has reported net profit after tax of Rs 233.59 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 31-12-2022, the company has a total of 44 Crore shares outstanding.

Investment Rationale

Management aspires to deliver 27.0% EBITDA margin in FY23. Considering 9MFY23 performance, the brokerage has cut earnings and retains BUY with a revised DCF-based TP Rs610 (implying 36.2x avg. FY24E/FY25E EPS).

Promoter/FII Holdings
Promoters held 54.27 per cent stake in the company as of 31-Dec-2022, while FIIs owned 11.14 per cent, DIIs 27.0 per cent.