⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
EMAMILTD - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | EMAMILTD | Market Cap | 20,753 Cr. | Current Price | 475 ₹ | High / Low | 655 ₹ |
| Stock P/E | 25.5 | Book Value | 71.8 ₹ | Dividend Yield | 1.68 % | ROCE | 34.0 % |
| ROE | 31.5 % | Face Value | 1.00 ₹ | DMA 50 | 514 ₹ | DMA 200 | 553 ₹ |
| Chg in FII Hold | -1.90 % | Chg in DII Hold | 1.72 % | PAT Qtr | 182 Cr. | PAT Prev Qtr | 163 Cr. |
| RSI | 32.4 | MACD | -10.8 | Volume | 1,61,444 | Avg Vol 1Wk | 4,15,678 |
| Low price | 474 ₹ | High price | 655 ₹ | PEG Ratio | 32.2 | Debt to equity | 0.01 |
| 52w Index | 0.36 % | Qtr Profit Var | -14.8 % | EPS | 18.7 ₹ | Industry PE | 46.8 |
📊 Core Financials
- Revenue growth: Stable, with PAT at 182 Cr vs 163 Cr in previous quarter, though quarterly variation shows -14.8 %.
- Profit margins: Strong, EPS at 18.7 ₹ indicates consistent profitability.
- Debt ratios: Excellent, debt-to-equity at 0.01 shows negligible leverage.
- Cash flows: Supported by strong profitability and minimal debt burden.
- Return metrics: ROCE 34.0 %, ROE 31.5 % — very strong efficiency and shareholder returns.
💹 Valuation Indicators
- P/E ratio: 25.5, significantly below industry average (46.8), suggesting undervaluation.
- P/B ratio: Current Price / Book Value ≈ 6.6, moderately expensive relative to assets.
- PEG ratio: 32.2, indicates valuation stretched relative to growth expectations.
- Intrinsic value: Appears undervalued compared to peers, supported by strong returns.
🏢 Business Model & Competitive Advantage
- Operates in FMCG sector with strong presence in personal care and healthcare products.
- Well-diversified portfolio with popular brands in niche categories.
- Competitive advantage through brand recognition, distribution network, and low debt structure.
📈 Entry Zone & Long-Term Guidance
- Entry zone: Attractive near 470–490 ₹ levels, close to 52-week low.
- Long-term holding: Recommended due to strong ROE/ROCE, brand strength, and undervaluation relative to industry; suitable for patient investors.
Positive
- Strong ROCE (34.0 %) and ROE (31.5 %).
- Negligible debt-to-equity ratio (0.01).
- P/E ratio below industry average, indicating undervaluation.
- DII holdings increased (+1.72 %).
- Dividend yield at 1.68 % provides steady income.
Limitation
- PEG ratio at 32.2 suggests stretched valuation relative to growth.
- Quarterly profit variation negative (-14.8 %).
- Stock trading below DMA 50 and DMA 200, showing weak momentum.
Company Negative News
- FII holdings decreased (-1.90 %).
- Technical indicators weak: RSI at 32.4 (oversold), MACD negative.
Company Positive News
- Quarterly PAT improved sequentially (182 Cr vs 163 Cr).
- Strong fundamentals with high ROE and ROCE.
- Low debt ensures financial stability.
Industry
- FMCG sector resilient, driven by steady demand in personal care and healthcare products.
- Industry PE at 46.8, much higher than EMAMILTD’s P/E, suggesting relative undervaluation.
Conclusion
- EMAMILTD demonstrates strong fundamentals with high efficiency and negligible debt.
- Valuation appears attractive compared to industry peers despite stretched PEG ratio.
- Entry advisable near lower support levels; long-term holding recommended for investors seeking exposure to resilient FMCG growth.
Would you like me to also prepare a comparative HTML snapshot against peers like Dabur, Marico, and HUL to highlight EMAMILTD’s relative valuation and strengths?