Buy Emami, target price Rs 560: Motilal Oswal

Buy Emami, target price Rs 560:  Motilal Oswal

Motilal Oswal has buy call on Emami with a target price of Rs 560. The current market price of Emami Ltd. is Rs 479.95.

Emami Ltd., incorporated in the year 1983, is a Mid Cap company (having a market cap of Rs 21514.47 Crore) operating in FMCG sector.

For the quarter ended 31-12-2020, the company reported a Consolidated sales of Rs 933.61 Crore, up 27.05 % from last quarter Sales of Rs 734.82 Crore and up 14.89 % from last year same quarter Sales of Rs 812.64 Crore Company reported net profit after tax of Rs 209.85 Crore in latest quarter.

Investment Rationale
While it is too early to call out the structural recovery in sales, the second successive double-digit sales growth in 18 quarters (apart from 1QFY19, which was aided by the sales decline in 1QFY18 due to GST implementation) and a good outlook for the next few quarters leads to strong visibility.

Promoter/FII Holdings
Promoters held 53.9 per cent stake in the company as of Dec 30, 2020, while FIIs held 9.6 per cent, DIIs 27.4 per cent and public and others 9.2 per cent.

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