Aug 30, 2010

Emami Ltd - Q1FY11 Result Update

Result Highlights

Emami Ltd posted revenue growth of 28% Y-o-Y to INR 2419.50 mn backed by a 25% volume growth.
The operating profit for the quarter was INR 658.50 mn, up 13% on a Y-o-Y basis.
PAT at INR 352.50 mn witnessed a growth of 127% as compared to the same quarter in the previous year.

Valuation

At the CMP of INR 438, the stock trades at ~17x its TTM EPS. Considering the strong growth in FMCG sector and the company’s expansion plans We recommend to ACCUMULATE the stock for a price objective of INR 505.