The IIFL Securities Report: Buy Emami - April 26

IIFL Securities has issued a "Buy" call on Emami as of April 26, recommending purchase at the current market price of ₹466.5. The brokerage firm has set a target price of ₹519 for the stock, indicating a potential upside of approximately 11%. This bullish outlook is based on the company's strong fundamentals, including resilient performance in its core businesses, brand strength, and healthy margins.

About Emami:

Emami is an Indian multinational personal care and wellness products company headquartered in Kolkata, India. It is the flagship company of the Emami Group. The company's products include hair care, skin care, oral care, and personal hygiene products. Emami has a strong presence in India and has also expanded to international markets such as Bangladesh, Sri Lanka, the Middle East, and North Africa. The company is known for its popular brands such as Emami 65 Cool, Fair and Handsome, Navratna, BoroPlus, and Kesh King. Emami is listed on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE).

52 Week Price Trend:

Emami (NSE: EMAMILTD) currently trades at Rs 466.5, having fluctuated between a 52-week high of Rs 588.65 and a low of Rs 340.55. The stock has experienced a significant decline from its peak, indicating a potential buying opportunity for value investors. However, it is important to conduct thorough research and consider the company's financial performance, industry outlook, and overall market conditions before making any investment decisions.

Stratzy's MOST Analysis:

EMAMILTD has received an AA- rating from Stratzy's MOST Framework. This indicates a medium fundamental risk. The MOST Framework assesses companies based on Management, Outlook, Safety, and Trend. The AA- rating suggests that EMAMILTD performs well on these pillars, with strengths in management, a positive outlook, strong safety measures, and a favorable trend. This overall rating indicates that EMAMILTD is a financially sound company with a stable business model.

Company's Fundamentals:

Emami (NSE: EMAMILTD) is a fast-moving consumer goods company with a strong presence in the personal and healthcare segments. As of today, its stock is trading at a PE (Price-to-Earnings) ratio of 28.69, meaning investors are willing to pay Rs. 28.69 for every Re. 1 of earnings. The PB (Price-to-Book) ratio, which compares the market value of a company to its book value, stands at 8.6. This indicates that the stock is trading at a premium to its book value. Emami also offers a dividend yield of 1.7%, providing investors with a potential source of passive income.

Fundamental and Technical information provided in this blog were last updated on 26 Apr, 2024

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