India’s personal care industry is rapidly growing, driven by rising consumer awareness and disposable incomes. Valued at over $25 billion in 2023, the sector is expanding at a CAGR of 9%. Skincare, haircare, and cosmetics dominate, with increasing demand for natural and organic products among urban and young consumers.
With a market capitalization of Rs 32,750.98 crore, the shares of Emami Ltd were trading at Rs 745.90 per share, increasing around 0.12 percent as compared to the previous closing price of Rs 746.80 apiece.
Financial performance:-
Examining the company’s financial condition, revenue ramped up by 10 percent from Rs 826 crore in Q1FY24 to Rs 906 crore in Q1FY25, during the same time frame net profit zoomed significantly by 10 percent from Rs 137 crore to Rs 151 crore.
Brokerage Recommendations:-
Emkay Global Financial Services, one of the well-known brokerages in India, gave a ‘Buy’ call on the stock with a target price of Rs 950, indicating a potential upside of 27 percent from Wednesday’s price of Rs 745.90 per share.
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Here’s the explanation for the probable upward target of 27%:
● Emami is shifting focus to urban, new-age consumers, having already established a strong rural presence, which contributes 52% of its revenue. Under its growth transformation project, it aims to expand in modern retail channels and boost engagement with new consumers.
● Emami has invested in five direct-to-consumer (D2C) platforms, providing an additional growth lever. This investment complements its strategy to broaden its brand portfolio, setting the stage for medium-term growth and expansion across different consumer categories.
● The company has partnered with Boston Consulting Group (BCG) for a 3-year plan to revitalize key brands like Kesh King and Boroplus, ensuring long-term sustainability. This partnership will help rejuvenate underperforming products and capitalize on existing strong brand equity.
● Emami is targeting low double-digit growth in FY25, with organic growth expected at 7-8%. After achieving 10% growth in Q1, management anticipates continued growth momentum, reaching double digits by Q3. The company aims to maintain healthy margins while reinvesting in brand development.
Emami Limited manufactures health, beauty, and personal care products. The company’s brands include BoroPlus, Navratna, Zandu, Fair and Handsome, Kesh King, Mentho Plus Balm, Dermicool, 7 Oils in One, HE, Diamond Shine, Emami Golden Beauty, Emami Naturally Fair, Emami Emasol, and Creme21.
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Written by:- Abhishek Singh
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