Emami Ltd., one of India’s top FMCG companies, was founded in 1974 and has grown into a leading producer and marketer of healthcare and personal care products. Known for trusted brands like Navratna, BoroPlus, Fair & Handsome, Zandu Balm, Menthol Plus, and Kesh King, Emami offers a diverse portfolio of over 450 products. Its extensive distribution network covers over 4.9 million retail stores across India and reaches more than 70 countries, including regions in SAARC, MENAP, Southeast Asia, Africa, Eastern Europe, and the CIS. Emami Ltd., part of the diversified Emami Group, currently has a market valuation of around ₹29,000 crore.
The company’s board has announced a first interim dividend of ₹4 per share (400%) for FY 2024-25, with a record date of November 18, 2024, for shareholders eligible to receive it.
In its financial performance for the September 2024 quarter, Emami reported a revenue increase of 3%, reaching ₹890.59 crore compared to ₹864.87 crore for the same quarter last year. Revenue for the first half of FY25 grew by 6.3%, rising from ₹1,690.53 crore in Q2FY24 to ₹1,796.66 crore. Total income also increased year-over-year from ₹875.98 crore to ₹912.15 crore, while profit after tax (PAT) for the quarter grew 17.2% to ₹210.99 crore, up from ₹179.99 crore. The half-yearly PAT rose by 14.2%, totaling ₹361.59 crore compared to ₹316.74 crore previously. Operating expenses rose marginally from ₹631.20 crore to ₹640.12 crore.
Emami’s leadership expressed optimism about the company’s growth for the second half of FY25. Vice Chairman Harsha V Agarwal noted that the company achieved 6% revenue growth, 10% EBITDA growth, and a 16% profit increase, despite broader economic challenges. He emphasized expectations for stronger sales in H2 FY25, driven by rising urban demand, favorable seasonal trends, and double-digit growth in the international segment, excluding Bangladesh. Emami has recently launched 11 new products in India and continues to invest strategically, aiming to boost consumer confidence and achieve double-digit revenue growth for the remainder of the fiscal year.
Vice Chairman and Whole-Time Director Mohan Goenka highlighted the growth of organized sales channels, with modern trade, e-commerce, and institutional sales now contributing 26.6% to domestic revenue, marking a 190-basis point increase. The upcoming relaunch of Fair and Handsome and its focus on Kesh King further support Emami’s growth outlook. A favorable winter season is expected to boost the company’s winter product line, contributing to a solid performance in the coming months.
On the technical side, analysts view Emami’s stock as having consolidation potential between ₹650 and ₹700, with moderate support at ₹660. The stock is trading above its 200-day EMA, suggesting a possible buying opportunity of around ₹660 if bullish momentum builds. With a breakout above ₹700, analysts anticipate a potential short-term target of ₹760, recommending a stop-loss at ₹630 for investors.
Disclaimer: The information provided is for informational purposes only and should not be construed as financial or investment advice. Please consult with a qualified financial advisor before making any investment decisions.
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