Emami Ltd Stock Analysis

BSE: 531162 | NSE: EMAMILTD | Household & Personal Products | Large Cap

BSE Share Price Aug 18, 13:53
465.65 1.70 (0.37%)

DeciZen - Make an Informed Decision on Emami

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Emami Price Chart

P/E Ratio (CD) :
24.54
Market Cap :
20,467.2 Cr.
52-wk low :
393.6
52-wk high :
621.4
Bole Toh?

1. Is Emami Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Emami Ltd is a good quality company.

2. Is Emami Ltd undervalued or overvalued?

The key valuation ratios of Emami Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Emami Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Emami Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Emami:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Emami Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 36.4%44.5%48.9%24.4%18.5%16.8%14.4%15.4%23.9%40.4%-
Value Creation Index 1.72.32.61.20.60.50.10.11.1NA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,6991,8212,2172,3582,4882,5312,6952,6552,8813,1923,309
YoY Gr. Rt. %-7.2%21.8%6.4%5.5%1.7%6.5%-1.5%8.5%10.8%-
Adj EPS 6.99128.78.37.96.86.810.319.118.9
YoY Gr. Rt. %-30.5%32.5%-27.1%-5.2%-4.5%-13.5%-0.3%50.4%86.1%-
BVPS (₹) 17.120.527.135.538.744.445.740.239.747.148.8
Adj Net Profit 315410544396376359310309456842835
Cash Flow from Ops. 323428534562730588554531922644-
Debt/CF from Ops. 0.40.10.11.20.70.60.20.40.10.4-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 7.3%5.1%5.8%10.8%
Adj EPS 11.9%18.2%40.8%86.1%
BVPS 11.94118.7
Share Price 11.4% -3.3% 15.6% -21.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 42.44850.327.922.319.115.215.925.443.939.5
Op. Profit Mgn % 26.524.324.429.230.528.527.126.230.729.828.9
Net Profit Mgn % 18.522.524.516.815.114.211.611.81626.825.2
Debt to Equity 0.2000.40.30.20.10.10.10.1-
Working Cap Days 967954646571871131081010
Cash Conv. Cycle 2011-2-5-1681514130

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 39.50%

Net Profit is growing at healthy rate in last 3 years 40.79%

Sales growth has been subdued in last 3 years 5.81%

Sales growth is not so good in last 4 quarters at 8.66%

Latest Financials - Emami Ltd.

Standalone Consolidated
TTM EPS (₹) 19.4 18.9
TTM Sales (₹ Cr.) 2,947 3,309
BVPS (₹.) 49.5 48.8
Reserves (₹ Cr.) 2,138 2,110
P/BV 9.38 9.51
PE 23.96 24.54
From the Market
52 Week Low / High (₹) 393.60 / 621.35
All Time Low / High (₹) 2.34 / 714.00
Market Cap (₹ Cr.) 20,467
Equity (₹ Cr.) 44.1
Face Value (₹) 1
Industry PE 64.2

Management X-Ray of Emami :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *89.2490.4846.5038.9432.8930.9231.4229.1335.2137.14
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

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Key Ratios of Emami

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Emami Ltd

Emami Limited is one of the leading and fastest growing personal and healthcare businesses in India, with an enviable portfolio of household brand names such as BoroPlus, Navratna, Fair and Handsome, Zandu Balm, Mentho Plus Balm, Fast Relief and Kesh King. The Company is a public limited company domiciled in India and is primarily listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Business area of the company

The Company is one of India’s leading FMCG Companies engaged in manufacturing & marketing of personal care & healthcare products with an enviable portfolio of household brand names such as Boro Plus, Navratna, Fair and Handsome, Zandu Balm, Kesh King, Zandu Pancharishta, Mentho Plus Balm and others.

Products

BoroPlus

  • Ayurvedic Antiseptic Cream
  • Prickly Heat Powder
  • Doodh Kesar Body Lotion
  • Aloe Vera Gel
  • Hygiene Range

Navratna:

  • Cool Oil
  • Extra Thanda
  • Extra Thanda Hairfall Rodhak
  • Garam Ayurvedic Oil
  • Maxx Cool Talc
  • Cool

Zandu

  • Balm
  • Balm Ultra Power

Fair and Handsome

  • Fairness Cream For Men
  • Instant Fairness Face Wash
  • Complete Winter Solution
  • Laser 12

Mentho plus

  • Balm

Fast Relief

  • Pain Relief Ointment

Vasocare

  • Herbal Petroleum Jelly

Zandu

  • Healthcare OTC, Classical, Ethical
  • Nityam
  • Kesari Jivan
  • Ayurvedic Hand Sanitizer

Emami 7 Oils in One

  • Non Sticky Hair Oil

Kesh King

  • Haircare

Diamond Shine

  • Creme Hair Colour: 1.0 Natural Black; 3.0 Dark Brown; 3.66 Cherry Red; 4.0 Natural Brown and 4.16 Burgundy

HE: Deodorants

  • Passion
  • Power
  • Force
  • Intense
  • Arctic
  • Lagoon
  • Ruler
  • Innovator
  • Respect
  • Achiever
  • Magic Duo Angel & Demon
  • Magic Duo Yin & Yang

Emami Golden Beauty

  • Talc

Emami Naturally Fair

  • Herbal Fairness Cream

Awards

2018-19

  • The Institute of Internal Auditors India - Calcutta Chapter awarded the Company for its ‘Excellence in Internal Audit Function’ (in the large manufacturing sector category).
  • Emami Foundation’s Ayurveda based ‘Sanjeevani’ CSR project was awarded the ‘Kolkata CSR Leadership Awards 2018’ under the category ‘Concern for Health’.
  • Emami ranks at 18 in the list of top 50 advertisers in 2018 of Pitch magazine. (March, 2019)
  • Emami Limited has been declared as the Winner of 'Golden Peacock Innovative Product/Service Award' for the year 2019 (for ‘Kesh King Oil Applicator’)
  • Emami Limited ranked at 425th position in the Fortune India 500 2018 list from its earlier position of 402nd in 2017. In FMCG sectoral list, Emami has been ranked at 20th position out of 23 companies. (December, 2018)

2019-20

  • Awarded ‘Company of the year- FMCG’ by CNBC-Awaaz for the Company’s outstanding performance on parameters such as growth, capital efficiency and profitability over a period of time
  • Emami Group was conferred with ‘Star of the Year’ at the 10th edition of Think CSR 2019 Award organised by Tefla’s.

Milestones

  • 1974: Two childhood friends Mr RS Agarwal and Mr RS Goenka quit their jobs to start their own business, Emami
  • 1978: Acquired Himani Limited and set up factory in Kolkata
  • 1984: Boroplus Antiseptic Cream launched, under Himani umbrella
  • 1989: Navratna Cool Oil launched, under the Himani name
  • 1989: Set up second factory in Pondicherry
  • 1998: Expanded the distribution network of the company to South India
  • 1998: Emami merged with Himani Limited
  • 1999: Launch of Sona Chandi Chyawanprash
  • 2005: Launch of Fair and Handsome, the first fairness cream for men
  • 2005: Public issue of 50 lac shares, listed with NSE
  • 2006: Introduced Health Care Division
  • 2006: Merged JB Marketing
  • 2008: Successful Zandu Pharmaceuticals acquisition at Rs 730 crore
  • 2009: Demerged Zandu fmcg into Emami
  • 2009: Raised Rs 310 crore through QIP
  • 2010: Crossed net sales of Rs 1000 crore
  • 2010: Exceeded market cap of Rs 5000 crore
  • 2010: Split of shares from Rs 2 to Re 1 per share
  • 2011: Conceived setting up of its first overseas manufacturing unit in Bangladesh.
  • 2012: Signed 4 Olympians & 1 cricketer as brand endorsers for a single brand, Fast Relief
  • 2012: Started production at Bangladesh manufacturing unit
  • 2013: Bonus Issue; exceeded market capitalisation of Rs. 10,000 crore
  • 2013: Launched BoroPlus Face wash. Signed in Sonakshi Sinha for the endorsement
  • 2014: Declared Interim Dividend of Rs 3 /share
  • 2014: Entered the male deodorants space with HE , with brand ambassador, Hrithik Roshan
  • 2014: Launched Fair & Handsome- Instant Fairness Face wash
  • 2014: Launched Zandu Balm Ultra Power
  • 2014: Acquired ‘She Comfort’ brand
  • 2015: Acquired ‘Kesh King’ Business at Rs 1684 crore ( Including duties & taxes)
  • 2015: Acquired controlling stake in Fravin Pty Ltd.
  • 2015: Launched Zandu Gel Balm Junior
  • 2015: Exceeded Market Cap. Of Rs 23,000 crore
  • 2015: Launched 100% pure honey with Zero-added sugar.
  • 2016: Emami introduces Boroplus Perfect Touch to appeal to the Generation Next
  • 2016: Kesh King Introduces Sachet Pack For Its Shampoo
  • 2017: Emami Limited inaugurates its 3rd Manufacturing Unit in Assam
  • 2018: Navratna Oil launches its new winter variant: Navratna Garam Ayurvedic Tel
  • 2019: Bollywood Action Star Tiger Shroff adds 3-Ka-PunchTo Emami's HE Magic Duo
  • 2019: Emami ropes in Superstar Katrina Kaif as the new face for Emami 7 Oils in One
  • 2020: Emami Limited launches Boroplus Advanced Anti-Germ Hand Sanitizer
  • 2020: BoroPlus ropes in Juhi Chawla for its Hygiene Range
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