EMAMILTD - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.2

📊 Core Financials

Earnings & Profitability: EPS of ₹19.4 and PAT of ₹163 Cr (down from ₹190 Cr) show solid profitability despite a mild sequential dip. ROCE at 34.0% and ROE at 31.5% are excellent, reflecting strong capital efficiency and shareholder value creation.

Debt Profile: Debt-to-equity of 0.00 — completely debt-free, which enhances financial resilience and supports reinvestment.

Cash Flow: While not explicitly stated, consistent earnings and zero debt imply robust operating cash flows. Emami’s financial strength score is 85/100

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💰 Valuation Indicators

Metric Value Insight

P/E Ratio 31.2 Reasonable vs. industry PE (52.8)

P/B Ratio ~9.2 High premium over book value

PEG Ratio 39.5 Significantly overvalued relative to growth

Dividend Yield 1.33% Attractive for a consumer staples stock

Valuation is mixed — while P/E is fair, the PEG ratio suggests growth may not justify the premium.

🧴 Business Model & Competitive Advantage

Emami Ltd. is a leading FMCG player with a strong portfolio of personal care and healthcare brands

Flagship Brands: BoroPlus, Navratna, Zandu Balm, Fair and Handsome, Kesh King

Diversified Reach: Presence in over 60 countries with strong rural penetration

Ayurvedic & Herbal Focus: Differentiated positioning in wellness and natural products

The company has shown consistent revenue and profit growth, with a 6.46% YoY revenue increase and 11.46% earnings growth

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. Despite cost pressures, Emami has maintained margins and continues to expand its digital and e-commerce footprint.

📈 Technical & Sentiment Indicators

RSI: 53.3 – Neutral zone, suggesting balanced momentum.

MACD: 3.45 – Mild bullish crossover.

Volume Surge – Above weekly average, signaling rising interest.

DMA 50 & 200: Price is hovering near both, indicating consolidation.

Analyst consensus shows a 1-year price target of ₹710, implying ~18% upside

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. Long-term targets for December 2025 range up to ₹800

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💡 Investment Strategy

🔽 Entry Zone

Ideal Buy Range: ₹580–₹600, near DMA support and below current price.

Current Price ₹604: Slightly above ideal entry — consider partial accumulation or wait for a dip.

🕰️ Long-Term Holding

Hold or Accumulate on Corrections: Strong brand equity, zero debt, and high ROE/ROCE make Emami a reliable long-term compounder.

Watch PEG Ratio & Institutional Sentiment: FII outflow (−0.22%) and high PEG suggest short-term caution, while DII inflow (+0.38%) reflects domestic confidence.

You can explore Emami’s live share price and technical dashboard

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or review its financial overview and analyst forecast

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for deeper insights. Let me know if you'd like a peer comparison with Marico or Dabur.

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trendlyne.com

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stockanalysis.com

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dailybulls.in

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