Check Before You Invest : Emami Ltd

Q: Which industry/sub-sector does Emami Ltd belong to?

Emami Ltd belongs to the FMCG sector, operating specifically within the Household & Personal Products segment.

Q: Is Emami Ltd a good quality company?

Emami Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Emami Ltd undervalued or overvalued?

Emami Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 23.48, Historic Median: 31.25. Price to Book, Current: 5.6, Historic Median: 9.02. Price to Sales, Current: 4.82, Historic Median: 6.39. EV to EBITDA, Current: 17.08, Historic Median: 22.09

Q: Is Emami Ltd a good buy now?

Emami Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Emami Ltd?

Emami Ltd revenue growth is 6.5% for FY-2025, which is below its 5-year CAGR of 7.49%, indicating slower growth.

Q: Gross Profit margin of Emami Ltd?

Emami Ltd Gross profit margin which is the profit after deduction of direct costs, is 28.5% for FY-2025, which is in line with its 5-year median of 28.5%, indicating stable margins.

Q: Operating Profit Margin of Emami Ltd?

Emami Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 26.92% for FY-2025, which is in line with its 5-year median of 26.92% indicating stable margins.

Q: Net Profit Margin of Emami Ltd?

Emami Ltd Net Profit Margin is 21.07% for FY-2025, is in line with its 5-year median of 20.24%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 28.5, Historic Median: 28.5. Operating Profit Margin (%), Current: 26.92, Historic Median: 26.92. Net Profit Margin (%), Current: 21.07, Historic Median: 20.24

Q: Return on Asset of Emami Ltd?

Emami Ltd Return on Asset is 27.44%, which is above its 5-year historical median of 25.92%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Emami Ltd?

Emami Ltd Return on capital employed is 34.28% for FY-2025, which is in line with its 5-year historical median of 32.76%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Check Before You Invest : Emami Ltd

Snapshot

Q.1 Which industry/sub-sector does Emami Ltd belong to?

Emami Ltd belongs to the FMCG sector, operating specifically within the Household & Personal Products segment.

Q.2 Is Emami Ltd a good quality company?

Emami Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Emami Ltd undervalued or overvalued?

Emami Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	23.48	31.25
Price to Book	5.6	9.02
Price to Sales	4.82	6.39
EV to EBITDA	17.08	22.09

Q.4 Is Emami Ltd a good buy now?

Emami Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Emami Ltd?

Emami Ltd revenue growth is 6.5% for FY-2025, which is below its 5-year CAGR of 7.49%, indicating slower growth.

Q.2 Gross Profit margin of Emami Ltd?

Emami Ltd Gross profit margin which is the profit after deduction of direct costs, is 28.5% for FY-2025, which is in line with its 5-year median of 28.5%, indicating stable margins.

Q.3 Operating Profit Margin of Emami Ltd?

Emami Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 26.92% for FY-2025, which is in line with its 5-year median of 26.92% indicating stable margins.

Q.4 Net Profit Margin of Emami Ltd?

Emami Ltd Net Profit Margin is 21.07% for FY-2025, is in line with its 5-year median of 20.24%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	28.5	28.5
Operating Profit Margin (%)	26.92	26.92
Net Profit Margin (%)	21.07	20.24

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Emami Ltd?

Emami Ltd Return on Asset is 27.44%, which is above its 5-year historical median of 25.92%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Emami Ltd?

Emami Ltd Return on capital employed is 34.28% for FY-2025, which is in line with its 5-year historical median of 32.76%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Emami Ltd?

Emami Ltd Return on equity is 31.23% for FY-2025, which is in line with its 5-year historical median of 30.49%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Emami Ltd?

Emami Ltd Cash conversion cycle is 16 days, in line with its 5-year historical median of 16 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.3	1.23
ROE (%)	31.23	30.49
ROCE (%)	34.28	32.76
Cash Conversion Cycle	16 days	16 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Emami Ltd?

Emami Ltd Debt-to-Equity ratio is 0.02, which is lower the industry average of 0.10, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Emami Ltd?

Emami Ltd Debt to cash flow from operations is 0.07, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Emami Ltd?

Q.1 Promoter shareholding and pledge status of Emami Ltd?

Promoters hold 54.84% of the Emami Ltd, with 16.43% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Emami Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Emami Ltd vs industry peers?

Emami Ltd revenue CAGR is 7.49%, compared to the industry median CAGR of 2.59%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	6.5	2.6
Gross Profit Growth (%)	9.9	16.2
Operating Profit Growth (%)	7.9	11.8
Net Profit Growth (%)	10.9	19

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.3	0.88
ROE (%)	31.23	8.9
ROCE (%)	34.28	10.3
Cash Conversion Cycle (days)	15.97	59

Valuation & price assessment

Q.1 Stock return of Emami Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -2.8% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-2.8%	-4.2%	1.3%	-32.4%

Q.2 Valuation ratios of Emami Ltd vs historical?

The current P/E ratio of 23.48 is lower than its historical median of 31.25, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	23.48	31.25	44.15
Price to Book	5.6	9.02	3.71
Price to Sales	4.82	6.39	4.58
EV to EBITDA	17.08	22.09	23.48

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Check Before You Invest : Emami Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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