EMAMILTD - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | EMAMILTD | Market Cap | 17,545 Cr. | Current Price | 403 ₹ | High / Low | 635 ₹ |
| Stock P/E | 20.6 | Book Value | 72.3 ₹ | Dividend Yield | 2.48 % | ROCE | 29.8 % |
| ROE | 28.3 % | Face Value | 1.00 ₹ | DMA 50 | 441 ₹ | DMA 200 | 496 ₹ |
| Chg in FII Hold | -0.46 % | Chg in DII Hold | 0.19 % | PAT Qtr | 166 Cr. | PAT Prev Qtr | 339 Cr. |
| RSI | 33.8 | MACD | -6.36 | Volume | 15,70,440 | Avg Vol 1Wk | 9,58,112 |
| Low price | 385 ₹ | High price | 635 ₹ | PEG Ratio | 1.41 | Debt to equity | 0.03 |
| 52w Index | 7.16 % | Qtr Profit Var | -12.3 % | EPS | 19.3 ₹ | Industry PE | 44.2 |
📊 Financials: EMAMILTD shows strong profitability but recent earnings volatility. Quarterly PAT dropped to 166 Cr from 339 Cr, reflecting pressure on margins. ROCE at 29.8% and ROE at 28.3% highlight excellent efficiency and profitability. EPS stands at 19.3 ₹, supporting solid earnings. Debt-to-equity is very low at 0.03, indicating a virtually debt-free balance sheet and strong cash flow position.
💰 Valuation: The stock trades at a P/E of 20.6, well below the industry average of 44.2, suggesting undervaluation. Book value is 72.3 ₹, with current price at 403 ₹, implying a P/B ratio of ~5.6. PEG ratio of 1.41 indicates valuation is moderately stretched relative to growth. Intrinsic value appears higher than current levels, suggesting the stock is undervalued.
🏭 Business Model & Health: EMAMILTD operates in FMCG, with strong presence in personal care and healthcare products. Competitive advantage lies in brand recognition, distribution network, and diversified product portfolio. Overall health is strong, supported by profitability, low debt, and consistent dividend payouts.
📈 Entry Zone: RSI at 33.8 indicates oversold levels. Support is near 385 ₹, resistance at 635 ₹. Entry around 390–410 ₹ offers a favorable long-term opportunity. Long-term holding is attractive given strong fundamentals, undervaluation, and sector resilience.
Positive
- 🏭 [Strong Brand](ca://s?q=EMAMILTD_brand_strength): Well-established presence in FMCG sector.
- 📈 [Profitability](ca://s?q=EMAMILTD_profitability): High ROCE (29.8%) and ROE (28.3%).
- 💸 [Low Debt](ca://s?q=EMAMILTD_debt_levels): Debt-to-equity ratio of 0.03 ensures financial stability.
- 💰 [Dividend Yield](ca://s?q=EMAMILTD_dividend_yield): Attractive yield of 2.48%.
Limitation
- 📉 [Profit Decline](ca://s?q=EMAMILTD_profit_decline): PAT dropped significantly quarter-on-quarter.
- ⚠️ [Valuation Stretch](ca://s?q=EMAMILTD_growth_valuation): PEG ratio of 1.41 suggests moderate stretch relative to growth.
- 📊 [FII Outflow](ca://s?q=EMAMILTD_FII_outflow): Foreign investors reduced holdings by -0.46%.
Company Negative News
- 📉 [Quarterly Decline](ca://s?q=EMAMILTD_quarterly_decline): PAT fell from 339 Cr to 166 Cr.
- 📊 [FII Reduction](ca://s?q=EMAMILTD_FII_reduction): Decline in foreign institutional holdings.
Company Positive News
- 📈 [DII Support](ca://s?q=EMAMILTD_DII_support): Domestic institutions increased holdings by 0.19%.
- 💹 [Dividend Strength](ca://s?q=EMAMILTD_dividend_strength): Consistent dividend payout with yield of 2.48%.
Industry
- 🛒 [FMCG Growth](ca://s?q=Indian_FMCG_growth): Sector resilient with steady demand for essentials.
- 📊 [Industry PE](ca://s?q=FMCG_industry_PE): Sector average P/E is 44.2, much higher than EMAMILTD’s valuation.
Conclusion
✅ EMAMILTD demonstrates strong fundamentals, profitability, and minimal debt, making it a fundamentally sound investment. Despite recent profit decline, the stock appears undervalued compared to industry peers. Entry around 390–410 ₹ is favorable, and long-term holding is recommended given the company’s resilience, strong brand, and attractive dividend yield.