Buy Emami 1098 - May'18
Buy Emami 1098 - May'18
Buy Emami 1098 - May'18
Emami has a superior track record of launching new brands Relative Reco Perform
(Fair & Handsome captures ~64% market share of men’s fairness Sector Rating Underweight
cream market) and transforming them into blockbusters.
Emami has also built other blockbuster brands such as Navratna
and Boroplus
Risks
Seasonality risk is one of the biggest risks to Emami. Summer
products’ (like Talc and cooling oil) and winter products’ (like
Boroplus) sales depend upon the weather conditions.
Ayurvedic products are produced by more than a thousand
small companies in India, though only about a dozen are big
national players. Given Emami’s success, entry of new
competitors cannot be ruled out.
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Edelweiss Ratios
Company Emami Dabur Marico
1 Wk Price performance (%) 6.2 0.7 3.1
3 M Price performance (%) 4.0 19.1 13.1
PE (x) 81.3 49.8 54.1
EV to EBITDA (x) 32.1 38.2 36.4
Return on Capital Employed (%) 23.5 30.5 47.1
Financial Snapshot
Year to March FY16 FY17 FY18E FY19E
Technical View
S1 S2 R1 R2
Emami 1077 1035 1143 1175
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Vinay Khattar
Head Research
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