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EMAMILTD - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.3
| Stock Code | EMAMILTD | Market Cap | 18,209 Cr. | Current Price | 417 ₹ | High / Low | 655 ₹ |
| Stock P/E | 20.8 | Book Value | 71.8 ₹ | Dividend Yield | 2.40 % | ROCE | 34.0 % |
| ROE | 31.5 % | Face Value | 1.00 ₹ | DMA 50 | 475 ₹ | DMA 200 | 530 ₹ |
| Chg in FII Hold | -1.90 % | Chg in DII Hold | 1.72 % | PAT Qtr | 339 Cr. | PAT Prev Qtr | 182 Cr. |
| RSI | 26.1 | MACD | -19.2 | Volume | 17,55,037 | Avg Vol 1Wk | 7,91,333 |
| Low price | 405 ₹ | High price | 655 ₹ | PEG Ratio | 26.4 | Debt to equity | 0.01 |
| 52w Index | 4.79 % | Qtr Profit Var | 21.3 % | EPS | 19.8 ₹ | Industry PE | 43.1 |
📊 Core Financials
- Revenue growth: Strong, PAT surged to 339 Cr. from 182 Cr.
- Profit margins: EPS at 19.8 ₹, ROE 31.5%, ROCE 34.0% — excellent efficiency
- Debt ratios: Very low debt-to-equity at 0.01, nearly debt-free
- Cash flows: Robust profitability supports strong cash generation
- Return metrics: ROE and ROCE significantly above industry averages
💹 Valuation Indicators
- P/E Ratio: 20.8, well below industry PE of 43.1, suggests undervaluation
- P/B Ratio: ~5.81 (417 ₹ / 71.8 ₹), moderate
- PEG Ratio: 26.4, indicates valuation stretched relative to growth expectations
- Intrinsic Value: Appears undervalued based on P/E, though PEG ratio raises caution
🏢 Business Model & Competitive Advantage
- Operates in FMCG sector with strong brand portfolio (personal care, healthcare products)
- Competitive advantage through brand recognition, distribution network, and rural market penetration
- Industry demand supported by consumer staples resilience and growth in emerging markets
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near 400–420 ₹ range
- Long-Term Holding: Recommended, strong fundamentals and brand positioning support sustained growth
✅ Positive
- High ROE (31.5%) and ROCE (34.0%) show excellent capital efficiency
- Debt-to-equity ratio at 0.01 indicates near debt-free status
- Dividend yield at 2.40% adds shareholder value
⚠️ Limitation
- PEG ratio at 26.4 suggests valuation stretched relative to growth
- Stock trading below 50 DMA (475 ₹) and 200 DMA (530 ₹), showing weak momentum
- RSI at 26.1 indicates oversold conditions
📰 Company Negative News
- FII holding decreased (-1.90%)
- Stock price corrected significantly from 52-week high of 655 ₹
🌟 Company Positive News
- PAT surged to 339 Cr. from 182 Cr.
- DII holding increased (+1.72%)
- Dividend yield at 2.40% provides consistent shareholder returns
🏭 Industry
- Industry PE at 43.1, EMAMILTD trades at a discount, suggesting undervaluation
- FMCG sector benefits from steady demand, brand-driven growth, and resilience against economic cycles
🔎 Conclusion
- EMAMILTD shows strong fundamentals with robust profitability, high returns, and minimal debt
- Valuation appears attractive compared to industry peers, though PEG ratio suggests cautious optimism
- Recommended for long-term holding, with entry near 400–420 ₹ offering good risk-reward potential