Emami - 3QFY17 Result Update - Tough quarter; Valuations remain attractive - Reliance Securities

We expect gradual recovery in consumer demand with increased currency circulation, good agricultural growth and implementation of 7th pay commission recommendations. Seasonal factors weigh a lot, especially in case of Emami. We continue to remain positive on Emami on the back of its strong brands, pricing power and market leadership in all its flagship brands. With earnings being revised downwards by 7%, we estimate the company to post revenues of Rs29.3bn and Rs33.8bn and net profit of Rs4.3bn and Rs5.5bn in FY17E and FY18E respectively. We maintain our BUY rating on the stock with revised target price of Rs1211, based on 33x Dec'18 EPS.

Shares of EMAMI LTD. was last trading in BSE at Rs.1163.15 as compared to the previous close of Rs. 1148. The total number of shares traded during the day was 13231 in over 1782 trades.

The stock hit an intraday high of Rs. 1197 and intraday low of 1143. The net turnover during the day was Rs. 15490520.

Source : Equity Bulls

Keywords