Volume muted; rural recovery a key monitorable

11 Mar 2024
5 Min read 
  • Emami reported 1.4% YoY sales growth in 3QFY24, impacted by subdued rural demand and weak winter portfolio performance.
  •  Volume growth remained flat, with a 1% YoY dip in 3QFY24.
  •  Gross margin expanded 290bp YoY to 68.8%, while EBITDA margin rose 170bp YoY to 31.6%.
  •  Emami's core categories have been experiencing slow user addition, hindering volume growth.
  •  Management has taken steps to revive volume growth but has not yet achieved desired results.
  •  Emami is valued at 28x P/E on Dec25 EPS, with a target price of INR600.
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