Emami Q3 Review - Record High Margin; Good Near Term Sales Outlook: Motilal Oswal
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Motilal Oswal Report
While Emami Ltd.’s sales/volume growth at 15%/13% were healthy, they were below our expectations.
However, record high Ebitda margin led to beat on our Ebitda and profit after tax forecasts.
Near term outlook remains healthy for the herbal portfolio as well as rural growth. This would elevate the company’s topline growth above the disappointing growth levels of approximately 3.7% in the five years ended FY20.
The management has also guided for ~30% Ebitda margin going forward.
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