(Rating: BUY, TP: Rs691, Upside: 21.1%)
- View - we build in revenue/EBITDA/PAT growth of 11%/11%/13% over FY21-24E for. We reiterate BUY rating with a PT of Rs691 based on 32x FY24E earnings, which is a 25% discount to peers like Marico, Dabur and GCPL. Key risks to our call would be a prolonged COVID disruption, erratic season and unexpected group level issues.
- Growth summary - 38% volume and 42% revenue growth in domestic business, domestic growth 5% above 1QFY20 levels; international business still lagging.
- Brand-wise performance - Compared to 1QFY20, healthcare and pain management up 95%, Boro Plus up 32%, 7 Oils in One up 17%, Kesh King up 2%; decline of 29% in Navratna and 47% in male grooming.
Shares of Emami Ltd was last trading in BSE at Rs. 563.2 as compared to the previous close of Rs. 569.85. The total number of shares traded during the day was 43839 in over 3153 trades.
The stock hit an intraday high of Rs. 582.5 and intraday low of 560. The net turnover during the day was Rs. 24902117.