Emami Q4 Review - Broad-Based Improvement Limits Downside: Prabhudas Lilladher

Range of Zandu brand products manufactured by Emami Ltd. (Source: Company website).

Emami Q4 Review - Broad-Based Improvement Limits Downside: Prabhudas Lilladher

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Prabhudas Lilladher Report

We are cutting FY22/23 earnings per share estimates of Emami Ltd. by 4.2/4.8% on the back of Covid-19 led lower demand in H1 FY22, raw material inflation and increased tax rate (20% from 19%).

The company will build on its momentum led by:

  1. Increased rural penetration led by Project Khoj

  2. Innovation-led market penetration,

  3. Double-digit growth expected in health care

  4. Omni channel growth through modern trade and e-commerce

It aims to maintain ~30% margin backed by price increase (4%), cost efficiencies and strong growth moment in spite of input cost headwinds from limited liability partnership, edible oil and packaging.

Click on the attachment to read the full report:

Prabhudas Lilladher Emami Q4FY21 Result Update.pdf

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