Synopsis: Emami shares gain focus as strong Q3 revenue, margin expansion, steady urban-rural demand, and innovative portfolio strategy support Citi’s Buy rating with 33% upside.
The shares of this company, which is in the business of manufacturing & marketing of personal and healthcare products, with an enviable portfolio of household brand names such as Navratna, BoroPlus, Zandu, Kesh King, etc., are in focus after Citi gave 33 percent upside.
With a market capitalization of Rs 21,890 crore, Emami Ltd’s share on Tuesday closed at Rs 498.55 per share, down by 1.66 percent from its previous day’s close price of Rs 506.95 per share. The share of this company has given a negative return of 13 percent over the last year.
Brokerage View
Citi has reaffirmed its Buy rating on Emami, cut the target price slightly to Rs 665, representing an upside of 33 percent from today’s closing price, driven by strong Q3 growth and steady portfolio performance.
In Q3, Emami’s revenue grew by 10 percent overall, with India contributing 11 percent growth and international markets 9 percent. Profitability also improved, as EBITDA rose 13 percent compared to last year. This increase in margins was supported by operating leverage, meaning the company managed costs efficiently while expanding sales, allowing more profit from each additional rupee of revenue.
Emami is seeing a gradual improvement in rural demand, while urban sales remain stable. Its portfolio strategy and product innovation continue consistently, helping the company maintain market presence and cater effectively to both urban and rural consumer segments.
Emami’s FY26 earnings per share (EPS) were slightly reduced by 1 percent, but despite this small cut, the stock remains attractively valued at over 32 times the projected FY27 EPS, reflecting potential for future growth and investor interest.
Business Highlights
On a consolidated level, net sales rose 11 percent to Rs 1,152 crore, driven by a 9 percent domestic volume growth. All major brands performed well in Q3, with their growth percentage, where BoroPlus (+16 percent), Kesh King (+10 percent), Pain Management (+8 percent), and healthcare (+7 percent) led the performance, while Male Grooming (+4 percent), Navratna, and Dermicool (+1 percent) showed steady growth.
Strategic subsidiaries, The Man Company and Brillare, grew 31 percent, reflecting successful innovation and premiumization. Several new products and variants were launched this quarter, catering to evolving consumer needs and reinforcing the brand’s growth momentum.
Our omnichannel strategy gained traction with quick commerce, doubling sales, and now accounts for 20 percent of e-commerce. Organised channels contributed 32 percent YTD, up 280 bps. International sales grew 9 percent, led by SAARC and CIS, with strong double-digit growth in 7 Oils in One, BoroPlus, Creme 21, and pain management products.
Emami is engaged in the manufacturing & marketing of personal care & healthcare products with an enviable portfolio of household brand names such as BoroPlus, Navratna, Fair and Handsome, Zandu Balm, Kesh King, Zandu Pancharishta, Mentho Plus Balm, and others.
Financial Highlights: The revenue from operations grew by 10 percent YoY to Rs 1,152 crore in Q3 FY26 from Rs 1,049 crore in Q3 FY25. EBDIT grew by 15 percent to Rs 384 crore in Q3 FY26 from Rs 334 crore in Q3FY25. Accompanied by Netprofit growth of 18 percent YoY to Rs 319 crore and EPS growth of 15 percent YoY to Rs 7.32 per share.
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