Emami Q1 Results Review - Strong Rural Sales, Heatwave Lift The Volumes: Centrum

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Centrum Broking Report.Emami Ltd.’s Q1 FY25 print was in line; consolidated revenue/Ebitda/profit after tax grew 9.7%/13.9%/ 10.1% YoY. Domestic revenues surged by 10%, led by 8.7% volume growth, yet international business saw 11.0% growth (constant currency). Management alluded despite challenges in rural company’s enhanced distribution/village coverage helped to capture good growth around extreme heatwave in the north. Higher spends on brand building resulted in volumeled growth reflecting rural growth continue to outpace urban in Q1. Navratna/Dermicool grew 27% followed by healthcare at 11%, while pain management declined by 7%. Boroplus range grew 4%, while Kesh king/Male grooming declined by 15%/5%. Sales for D2C brands TMC and Brillare (~6% of sales) grew 23% YoY. Modern trade/ecom and CSD channels continued to post strong growth, while GT saw good recovery. Gross margin inched up to 67.7% (+226bp) aided by lower raw material/PM prices. Despite higher ad-spends (+21.0%), and employee/other expenses +9.5%/+5.2%, Ebitda margins settled at 23.9% (+88bp). Management guided for HSD growth in domestic business. With strong rural recovery we tweak earnings and retain Buy with a revised DCF-based target price Rs 826 (implying 28.5 times average of FY26E/FY27E earnings per share)..Click on the attachment to read the full report:.Emami Q1 Results Review - Favorable Seasonality Aids Growth: ICICI Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Emami Q1 Results Review - Strong Rural Sales, Heatwave Lift The Volumes: Centrum

Given early sign of recovery in rural, led by better minimum support price and Government impetus on rural programs, and normal monsoon, the brokerage remains upbeat on the company’s growth story.

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Emami Q1 Results Review - Strong Rural Sales, Heatwave Lift The Volumes: Centrum

Given early sign of recovery in rural, led by better minimum support price and Government impetus on rural programs, and normal monsoon, the brokerage remains upbeat on the company’s growth story.

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