Emami share price jumps over 18% to 52-week after Q4 results; Should you buy the FMCG stock?
- Emami share price has gained over 23% in one month and more than 32% in the past three months. Over the past one year, Emami shares have given over 50% returns.
Emami share price jumped 18% in early trade on Thursday to hit a 52-week high after the homegrown FMCG major reported its Q4 results. Emami shares rallied as much as 18.66% to ₹619.00 apiece on the BSE.
Emami posted a net profit of ₹146.75 crore for the fourth quarter of FY24, an increase of 3.62% from ₹141.62 crore in the year-ago quarter.
The company’s revenue from operations in Q4FY24 rose 6.6% to ₹891.24 crore from ₹835.95 crore, YoY. The company achieved volume-led profit growth in the fourth quarter, Emami said in its earning statement.
Its domestic business grew 8%, registering a volume growth of 6.4%. While its International business grew by 9% in constant currency and 8% in INR terms driven primarily by the MENA region, it added.
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On the outlook, Emami said it remains “optimistic” about future growth, supported by a favourable economic landscape, forecast of a normal monsoon, anticipated rural market recovery, government initiatives, and promising macroeconomic factors.
Analysts remain bullish on Emami shares after in-line March quarter earnings. Here’s what brokerages said on Emami Q4 results and Emami share price:
Antique Stock Broking
Post the Q4FY24 results and factoring in a lower tax rate, Antique Stock Broking has increased its earnings estimates by ~4% for FY25–26E. It expects the performance to witness a gradual recovery driven by distribution expansion, higher investment in brands, and recovery in rural markets.
Consequently, the brokerage firm upgraded Emami shares to ‘Buy’ from ‘Hold’ previously and raised the target price to ₹616 per share from ₹527 earlier.
Emkay Global Financial Services
Emkay Global Financial Services sees Emami as better positioned ahead, on expected recovery in the rural demand setting and seasonality, whereas discretionary uptick is likely to come with a lag.
As the favorable seasonal expectations materialize, the brokerage sees valuation re-rating ahead. Supported by better summers, it lifts topline expectations by 2% and earnings by 3% over FY25-26E.
It maintained a ‘Buy’ rating and raised Emami share price target to ₹625 apiece.
Emami share price has gained over 23% in one month and more than 32% in the past three months. Over the past one year, Emami shares have given over 50% returns.
At 9:40 am, Emami shares were trading 17.35% higher at ₹612.15 apiece on the BSE.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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