Buy Emami: Stratzy's Target Price Rs 870

On June 7th, Stratzy issued a buy call on Emami, recommending investors to purchase the stock at its current market price of Rs 745.05. The brokerage firm anticipates a strong upside potential for Emami and has set a target price of Rs 870, implying a potential return of approximately 16.9%. This bullish view is driven by the expectation of solid financial performance by Emami, supported by its strong brand portfolio and continued expansion in both domestic and international markets.

About Emami:

Emami Limited is a leading personal and healthcare products company listed on the National Stock Exchange (NSE) in India. Founded in 1974, Emami offers a wide range of products under its flagship brands such as Navratna, Himani, BoroPlus, Fair and Handsome, and Zandu. The company has a presence in over 60 countries across the globe and its products cater to various personal care, healthcare, and wellness needs. Emami focuses on innovation and has consistently introduced new and improved products to meet evolving consumer demands.

52 Week Price Trend:

Emami Ltd. (NSE: EMAMILTD), a leading FMCG company in India, is currently trading at Rs 745.05, indicating a significant increase since its 52-week low of Rs 340.55. This represents a rise of over 118%. However, the stock is still below its 52-week high of Rs 588.65, suggesting potential for further growth. Emami's strong brand portfolio, wide distribution network, and focus on rural markets position it well to capitalize on India's growing FMCG industry. Investors should monitor the company's performance and consider the potential risks and rewards before making any investment decisions.

Stratzy's MOST Analysis:

EMAMILTD has been rated AA- by Stratzy's MOST framework, which evaluates a company's Management, Outlook, Safety and Trend. This rating indicates that EMAMILTD has a strong management team, a positive outlook, a stable financial position, and a favorable trend. The company's overall fundamental risk is considered low, indicating that it is a relatively safe investment.

Company's Fundamentals:

Emami (NSE: EMAMILTD) is a company with a stock PE (Price-to-Earnings) ratio of 28.69, indicating that for every rupee earned, investors are paying Rs. 28.69. The PB ratio (Price-to-Book) of 8.6 suggests that the company's market value is 8.6 times its book value, implying that it is trading at a premium. Additionally, Emami offers a dividend yield of 1.7%, which represents the annual dividend per share as a percentage of the current stock price. This yield provides investors with a regular income stream and indicates the company's commitment to shareholder returns.

Fundamental and Technical information provided in this blog were last updated on 07 Jun, 2024

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