Buy Emami, target price Rs 657: Centrum Broking

Centrum Broking has buy call on Emami with a target price of Rs 657. The current market price of Emami Ltd. is Rs 502.2. Time period given by analyst is one year when Emami Ltd. price can reach defined target.

Emami Ltd., incorporated in the year 1983, is a Mid Cap company (having a market cap of Rs 22134.70 Crore) operating in FMCG sector.

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



Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 784.62 Crore, down -2.01 % from last quarter Total Income of Rs 800.68 Crore and up 16.82 % from last year same quarter Total Income of Rs 671.67 Crore. Company reported net profit after tax of Rs 77.06 Crore in latest quarter.

Investment Rationale
The brokerage believes clear focus on improving rural markets has resulted in continued revenue momentum. With professional management (structure) and a result- oriented strategy in place, Emami could surpass growth projections and warrant a re-rating.

Promoter/FII Holdings
Promoters held 54.27 per cent stake in the company as of 30-Jun-2022, while FIIs owned 11.47 per cent, DIIs 26.45 per cent.