Emami inches up on talks to acquire Paras Pharma's personal care business

23 Nov 2011 Evaluate

Emami is currently trading at Rs. 409.00, up by 1.15 points or 0.28% from its previous closing of Rs. 407.85 on the BSE.

The scrip opened at Rs. 403.30 and has touched a high and low of Rs. 414.75 and Rs. 403.30 respectively. So far 1,096 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 545.00 on 12-Jul-2011 and a 52 week low of Rs. 313.20 on 10-Dec-2010.

Last one week high and low of the scrip stood at Rs. 433.00 and Rs. 403.30 respectively. The current market cap of the company is Rs. 6,188.00 crore.

The promoters holding in the company stood at 72.74% while Institutions and Non-Institutions held 18.14% and 9.12% respectively.

Marico with Emami and Wipro Consumer is in the final stage to buy Paras Pharma's Rs 100-crore personal care business from Reckitt Benckiser. Paras Pharma's personal care business including Livon hair conditioner and hair tonic, Borosoft antiseptic cream, Set Wet hair styling products and Zatak deodorant is likely to be valued at around Rs 800-900 crore. 

Reckitt Benckiser is expecting a valuation of Rs 1,000 crore for Paras' personal care business but the deal is likely to be sealed at a lower price because except Livon, which is a market leader in the hair tonic segment, most of the other brands are performing average.

Emami’s net profit for the quarter ended September 30, 2011 slipped by 11.74% at Rs 50.01 crore as compared to Rs 56.66 crore for the corresponding quarter of the previous year. Company’s total income has increased by 15.59% at Rs 305.84 crore for the quarter under review whereas the same stood at Rs 264.60 crore for the corresponding quarter of the previous year.

Emami Share Price

699.50 71.70 (11.42%)
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