EMAMILTD - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | EMAMILTD | Market Cap | 19,402 Cr. | Current Price | 444 ₹ | High / Low | 655 ₹ |
| Stock P/E | 22.2 | Book Value | 71.8 ₹ | Dividend Yield | 2.25 % | ROCE | 34.0 % |
| ROE | 31.5 % | Face Value | 1.00 ₹ | DMA 50 | 448 ₹ | DMA 200 | 506 ₹ |
| Chg in FII Hold | -0.46 % | Chg in DII Hold | 0.19 % | PAT Qtr | 339 Cr. | PAT Prev Qtr | 182 Cr. |
| RSI | 51.6 | MACD | 7.32 | Volume | 3,90,059 | Avg Vol 1Wk | 3,71,346 |
| Low price | 385 ₹ | High price | 655 ₹ | PEG Ratio | 28.1 | Debt to equity | 0.01 |
| 52w Index | 21.9 % | Qtr Profit Var | 21.3 % | EPS | 19.8 ₹ | Industry PE | 42.5 |
Financials & Valuation:
EMAMILTD demonstrates strong fundamentals. ROCE (34.0%) and ROE (31.5%) highlight excellent capital efficiency. EPS of 19.8 ₹ and quarterly PAT growth (339 Cr. vs 182 Cr.) show robust profitability momentum. Debt-to-equity is extremely low at 0.01, ensuring financial stability.
Valuation Indicators:
P/E ratio of 22.2 is significantly lower than the industry average (42.5), suggesting undervaluation. Book Value of 71.8 ₹ compared to current price of 444 ₹ indicates premium pricing but supported by strong returns. Dividend yield of 2.25% provides attractive income support. PEG ratio of 28.1, however, suggests stretched valuation relative to growth.
Business Model & Health:
EMAMILTD, a leading FMCG player, benefits from strong brand equity and consumer demand. Consistent profitability, low leverage, and sector growth reinforce overall health. However, reduced FII holdings (-0.46%) indicate declining foreign investor confidence.
Entry Zone & Holding Guidance:
Technically, support lies around 420–440 ₹, with resistance near 490–500 ₹. Entry near support levels offers favorable risk-reward. Long-term holding is recommended given strong fundamentals, dividend yield, and sector tailwinds, though valuation concerns should be monitored.
Positive
- Strong ROCE (34.0%) and ROE (31.5%).
- EPS of 19.8 ₹ with robust PAT growth.
- Very low debt-to-equity (0.01).
- Dividend yield of 2.25% provides income support.
- P/E ratio (22.2) well below industry average (42.5).
Limitation
- PEG ratio (28.1) indicates stretched valuation.
- Current price below 200 DMA (506 ₹) shows medium-term weakness.
- FII holdings declined (-0.46%).
Company Negative News
- Decline in FII holdings.
- Valuation concerns due to high PEG ratio.
Company Positive News
- Quarterly PAT surged to 339 Cr. from 182 Cr.
- DII holdings increased (+0.19%), showing domestic support.
- Strong earnings momentum.
Industry
- FMCG sector remains resilient, supported by consumer demand.
- Industry PE (42.5) is much higher than EMAMILTD’s, suggesting undervaluation.
- Long-term growth driven by brand strength and consumption trends.
Conclusion
EMAMILTD is fundamentally strong with excellent profitability, low debt, and attractive dividend yield. Entry near 420–440 ₹ offers favorable risk-reward. Long-term investors can hold confidently, supported by sector growth, while monitoring valuation risks from the high PEG ratio.
Would you like me to extend this into a 5-year performance trend overlay so you can visualize EMAMILTD’s consistency in earnings, margins, and valuation compared to FMCG peers?