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Emami: Rural recovery just the beginning of growth revival; Upside 23% - IndiaNotes.com
Emami: Rural recovery just the beginning of growth revival; Upside 23%
Motilal Oswal | Published: 10 Jan, 2018  | Source : IndiaNotes.com
  • We maintain our BUY rating on Emami, as:

  •  It is a great play on rural demand growth and wholesale recovery.

  • Before the slowdown caused by extraordinary factors like demonetization, Emami had the best track record among peers on consistency of earnings growth, which we expect will make a comeback.

  • Emami has a formidable portfolio of dominant brands, with best-in-class R&D and advertisement to support existing brands and new launches.

  • Despite likely resumption of better-than-peers’ earnings growth of 20% CAGR over FY18-21, the stock trades in line with peer multiples.

  • Our target price of INR1655 implies a one-year upside of 23% and a two-year upside of 39%. Our bull case upside is 33% for one year and 53% for two years.

Link to the PDF



About Motilal Oswal

Motilal Oswal was founded in 1987 as a small sub-broking unit, with just two people running the show. Today it has a 2000 member team with a networth of Rs7 bn and market capitalization as of March 31, 2008 at Rs19 bn.

 

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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.

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