Emami shares seen rising 21% as FMCG maker woos Street with Q1 results

Emami shares were in demand on Tuesday after the FMCG company reported a strong set of quarterly numbers for the April-June period.

FMCG major Emami reported a strong set of quarterly numbers on August 7. | Image: emamiltd.in

Emami shares were in demand on Tuesday, a day after the Kolkata-based FMCG company reported a strong quarterly performance. The Emami stock gained by as much as Rs 10.2 or 2.2 per cent to Rs 471.9 apiece on BSE, continuing to rise for a second straight session after the release of the earnings report.

Emami Q1 results

During market hours on Monday, Emami reported a consolidated net profit of Rs 137.7 crore for the first quarter of the current financial year, an increase of 86.5 per cent compared with the corresponding period a year ago.

Its revenue grew 6.8 per cent on a year-on-year basis to Rs 825.7 crore, according to a regulatory filing.

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The company said its domestic and international businesses registered overall growth of seven per cent and eight per cent respectively. Barring the sales of its summer portfolio, Emami said its domestic business grew 16 per cent.

Its EBITDA margin — a key measure of profitability — improved by 60 basis points to 23 per cent, according to a statement.

The company's management exuded confidence about sustaining growth owing to moderating inflation.

On Monday, the stock rose 2.7 per cent after the earnings announcement.

Here's what analysts make of Emami after the company's earnings announcement:

Jefferies, which maintained a 'buy' rating on Emami after the release of the earnings report, raised its target price for the FMCG stock by Rs 40 to Rs 560 — suggesting an upside of 21.3 per cent from Monday's closing price.

Brokerage	Rating	Target price (TP)	TP vs Monday's closing price
CLSA	Outperform	Raised to Rs 495 from Rs 440	+7.2%
Jefferies	Buy	Raised to Rs 560 from Rs 520	+21.3%
Goldman Sachs	Buy	Raised to Rs 540 from Rs 500	+16.9%

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