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Emami Ltd Stock Analysis

Large Cap
Evaluated by 4288 users | BSE: 531162 | NSE: EMAMILTD |
Household & Personal Products

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....

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

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'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20TTM
Return on Capital Employed 25.56%31.37%36.39%44.49%48.85%24.4%18.45%16.76%14.38%15.35%-
Value Creation Index 1.121.501.912.562.910.950.480.340.150.23-
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,2471,4541,6991,8212,2172,3582,4882,5312,6952,6552,881
Y-o-Y Gr. Rt.-16.6%16.9%7.2%21.8%6.4%5.5%1.7%6.5%-1.5%-
Adjusted EPS (Rs.) 4.835.96.939.0411.988.738.287.916.846.8210.23
Y-o-Y Gr. Rt.-22.2%17.5%30.5%32.5%-27.1%-5.2%-4.5%-13.5%-0.3%-
Book Value per Share (Rs.) 15.215.5717.1320.5327.1135.538.6644.3645.7340.2439.65
Adjusted Net Profit 219268315410544396376359310309455
Net Op. Cash Flow (Rs. Cr.) 127360323428534562730588554531-
Debt to Cash Flow from Ops 1.770.430.360.090.071.20.650.550.20.4-
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Emami Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 8.8%3.7%2.2%-1.5%
Adjusted EPS 3.9%-10.7%-6.3%-0.3%
Book Value per Share 11.48.21.3-12
Share Price 14.5% -0.3% -0.5% 129.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20TTM
Return on Equity (%) 33.3338.3742.4148.0250.2827.8922.3419.0515.1815.8525.61
Operating Profit Margin (%) 28.7227.4526.5324.2724.3729.1830.5228.4527.0726.1630.66
Net Profit Margin (%) 17.5818.4318.5222.5424.5216.7915.0914.211.5711.8415.79
Debt to Equity 0.320.220.150.040.030.420.270.160.050.120
Working Capital Days 11611496795464657187113139
Cash Conversion Cycle 29292011-2-5-1681553
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 53.86%
Institutions 36.97%
Non-Institutions 9.17%
Pledged *47.6846.8169.2971.5889.2490.4846.5038.9432.890.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Emami Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Emami Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Emami Ltd's performance infers:

Emami Ltd earnings have declined by -10.7%, whereas share price has depreciated -0.3% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Emami Ltd share prices over the last 10 years. Here is what we found out:

Emami Ltd share price has depreciated 12.8% annually over the past ten years.

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).

Read More

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
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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