BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Emami Ltd.’s overall volume growth in Q1 FY23 stood at 9.6% YoY, while it was 2.4% ex-Dermicool (merged from this quarter). The base of healthcare business along with pain management weakened (versus good growth in other segments) in Q1.
However, it is likely to be less challenging in subsequent quarters. According to the management, material cost pressures are likely to persist for some more time.
It is heartening, though, that Emami is investing on growth. Its ad-spends-to sales ratio is expected to increase by over 100 basis points in FY23 and investments in Project Khoj (to augment rural distribution) will also continue.
While sales growth continued to be unimpressive for a company of its size (with a five-/three-/two-year compound annual growth rate of 5.1%/5.8%/9.7%, respectively), the trend is getting relatively better. Emami's valuations are also inexpensive.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime 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 BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR