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Last Updated on: 19 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 531162 | NSE: EMAMILTD

Fundamental Analysis of Emami Ltd

Share Price and Basic Stock Data

Last Updated: July 18, 2024, 11:12 pm

Market Cap 34,571 Cr.
Current Price 792
High / Low813/413
Stock P/E47.4
Book Value 56.0
Dividend Yield1.01 %
ROCE32.6 %
ROE30.7 %
Face Value 1.00
PEG Ratio2.37

Data Source: screener.in

Competitors of Emami Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hindustan Unilever Ltd 6,43,125 Cr. 2,7382,751/2,17062.6 2181.53 %27.2 %20.2 % 1.00
JHS Svendgaard Laboratories Ltd 166 Cr. 21.139.5/15.5 21.70.00 %1.66 %2.37 % 10.0
Gillette India Ltd 26,005 Cr. 7,9748,099/5,40267.1 3161.07 %52.0 %38.5 % 10.0
Colgate-Palmolive (India) Ltd 84,966 Cr. 3,1213,155/1,82063.5 68.91.54 %96.8 %74.5 % 1.00
Ador Multi Products Ltd 15.0 Cr. 32.247.0/29.1 23.60.00 %37.6 %28.3 % 10.0
Industry Average82,189.76 Cr2,972.4377.28199.180.55%38.47%24.54%6.25

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales731661787971770773814983836826865996891
Expenses569493514633612604621689636636632682682
Operating Profit161168273338158169193294199190233314209
OPM %22%25%35%35%21%22%24%30%24%23%27%32%24%
Other Income46113817256427148111111
Interest5112222212233
Depreciation83838484838848476446464648
Profit before tax120952262699885186251148150196276169
Tax %27%18%18%18%-262%14%3%7%4%9%8%6%13%
Net Profit887818522035473180233142137180261147
EPS in Rs1.971.754.174.958.071.674.175.383.273.144.095.923.41

Last Updated: July 10, 2024, 4:44 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 10, 2024, 4:44 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1,5951,7002,0762,3582,4882,5312,6952,6552,8813,1923,4063,578
Expenses1,2521,2551,5361,6701,7291,8121,9701,9702,0002,2542,5502,632
Operating Profit343445541688759719725685880938855946
OPM %22%26%26%29%31%28%27%26%31%29%25%26%
Other Income545391443119254669906941
Interest7555458342121135710
Depreciation223534255309311325336367335247186
Profit before tax369457592423424393403374569688670791
Tax %15%12%18%14%20%22%25%19%20%-22%6%8%
Net Profit315402485363340306303302455837627724
EPS in Rs6.938.8710.708.007.506.776.686.6710.2319.0214.5016.58
Dividend Payout %38%39%33%44%47%52%60%60%78%42%55%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)27.62%20.65%-25.15%-6.34%-10.00%-0.98%-0.33%50.66%83.96%-25.09%15.47%
Change in YoY Net Profit Growth (%)0.00%-6.97%-45.80%18.82%-3.66%9.02%0.65%50.99%33.29%-109.05%40.56%

Growth

Compounded Sales Growth
10 Years:8%
5 Years:6%
3 Years:8%
TTM:5%
Compounded Profit Growth
10 Years:6%
5 Years:19%
3 Years:19%
TTM:18%
Stock Price CAGR
10 Years:12%
5 Years:20%
3 Years:13%
1 Year:92%
Return on Equity
10 Years:27%
5 Years:28%
3 Years:33%
Last Year:31%

Last Updated: July 17, 2024, 5:47 pm

Balance Sheet

Last Updated: July 10, 2024, 4:44 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital152323232323454544444444
Reserves7629091,2081,5891,7321,9912,0311,7781,7182,0322,2592,403
Borrowings11538366714733261102101012829194
Other Liabilities324333410409376458633644656692703739
Total Liabilities1,2161,3021,6762,6922,6032,7982,8192,6782,5203,0503,0963,280
Fixed Assets3973964531,9181,9941,8021,6801,4591,1321,3441,2451,114
CWIP4712296722303686367
Investments163296501104128314187156255303293442
Other Assets6095996936044606529151,0551,1261,4001,5511,717
Total Assets1,2161,3021,6762,6922,6032,7982,8192,6782,5203,0503,0963,280

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 323428534562730588554531922644749779
Cash from Investing Activity -130-140-237-1,313-306-276-26-231-224-234-122-205
Cash from Financing Activity -188-301-215502-496-324-428-405-688-402-608-563
Net Cash Flow5-1382-249-72-12100-106981911

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow228.00407.00505.0017.00286.00393.00615.00475.00779.00656.00764.00852.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days261718201422294229374450
Inventory Days58765968838788102118121100102
Days Payable52779011285109115135138138126143
Cash Conversion Cycle3216-13-24121291019189
Working Capital Days-7-6-133-37159369313755
ROCE %42%50%61%30%23%22%19%18%29%31%28%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters53.86%53.86%53.86%54.27%54.27%54.27%54.27%54.27%54.52%54.84%54.84%54.84%
FIIs12.49%12.71%12.52%12.72%11.47%11.25%11.14%11.01%11.46%11.90%12.86%13.46%
DIIs24.48%24.17%25.49%24.32%26.47%27.02%27.02%26.92%26.22%25.21%23.94%22.06%
Public9.17%9.26%8.14%8.69%7.80%7.47%7.58%7.81%7.81%8.05%8.35%9.63%
No. of Shareholders81,50882,19383,25786,24289,97185,46090,28597,04389,95579,21682,15191,334

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Kotak Emerging Equity Fund - Regular Plan8,135,3751.13508.872,906,6502024-07-18179.89%
HDFC Mid-Cap Opportunities Fund - Regular Plan7,419,4850.71464.092,906,6502024-07-18155.26%
Nippon India Small Cap Fund7,360,2520.89460.382,906,6502024-07-18153.22%
SBI Large & Midcap Fund6,500,0001.73406.582,906,6502024-07-18123.63%
DSP Mid Cap Fund5,265,7421.86329.372,906,6502024-07-1881.16%
DSP ELSS Tax Saver Fund4,224,3691.74264.232,906,6502024-07-1845.33%
Franklin India Prima Fund3,676,2252.09229.952,906,6502024-07-1826.48%
HDFC Small Cap Fund - Regular Plan3,365,8920.72210.542,906,6502024-07-1815.8%
DSP Equity Opportunities Fund2,906,6501.52181.812,906,6502024-07-180%
Franklin India Smaller Companies Fund2,750,0001.34172.012,906,6502024-07-18-5.39%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)16.5514.5018.8810.236.67
Diluted EPS (Rs.)16.5514.5018.8810.236.67
Cash EPS (Rs.)20.9320.0026.8818.5814.23
Book Value[Excl.RevalReserv]/Share (Rs.)56.3052.4347.0239.6340.22
Book Value[Incl.RevalReserv]/Share (Rs.)56.3052.4347.0239.6340.22
Revenue From Operations / Share (Rs.)81.9777.2072.3664.8058.58
PBDIT / Share (Rs.)22.8321.1223.7521.4516.50
PBIT / Share (Rs.)18.5715.5116.1613.199.08
PBT / Share (Rs.)18.2015.3515.9312.898.38
Net Profit / Share (Rs.)16.6714.3919.3010.326.80
NP After MI And SOA / Share (Rs.)16.5814.5019.0210.236.68
PBDIT Margin (%)27.8427.3532.8133.0928.16
PBIT Margin (%)22.6420.0922.3320.3515.49
PBT Margin (%)22.2019.8722.0119.8914.29
Net Profit Margin (%)20.3418.6426.6615.9311.61
NP After MI And SOA Margin (%)20.2218.7726.2815.7811.40
Return on Networth / Equity (%)29.5727.7740.4025.7916.60
Return on Capital Employeed (%)32.1428.6833.2832.2221.80
Return On Assets (%)22.0620.5627.4418.0411.30
Total Debt / Equity (X)0.020.030.120.050.11
Asset Turnover Ratio (%)1.121.001.071.040.90
Current Ratio (X)1.871.781.171.611.30
Quick Ratio (X)1.441.320.781.180.99
Inventory Turnover Ratio (X)2.362.432.722.653.17
Dividend Payout Ratio (NP) (%)0.0055.1842.3878.20119.88
Dividend Payout Ratio (CP) (%)0.0039.7930.2943.2756.80
Earning Retention Ratio (%)0.0044.8257.6221.80-19.88
Cash Earning Retention Ratio (%)0.0060.2169.7156.7343.20
Interest Coverage Ratio (X)99.83126.05206.5171.8335.58
Interest Coverage Ratio (Post Tax) (X)74.5286.90169.8335.5816.18
Enterprise Value (Cr.)18339.380.0019900.1021407.377794.39
EV / Net Operating Revenue (X)5.130.006.237.432.94
EV / EBITDA (X)18.410.0019.0022.4610.43
MarketCap / Net Operating Revenue (X)5.160.006.197.532.90
Retention Ratios (%)0.0044.8157.6121.79-19.88
Price / BV (X)7.550.009.5112.304.22
Price / Net Operating Revenue (X)5.160.006.197.532.90
EarningsYield0.030.000.040.020.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 823.13

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 3.93% compared to the current price 792

Intrinsic Value: 987.55

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 24.69% compared to the current price 792

Last 5 Year EPS CAGR: 19.98%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 29.42%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 11.00, which is a positive sign.
  3. The company has higher reserves (1,701.00 cr) compared to borrowings (212.25 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (2.08 cr) and profit (512.75 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 7.58, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Emami Ltd:
    1. Net Profit Margin: 20.34%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 32.14% (Industry Average ROCE: %)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 29.57% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 74.52
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.44
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 47.4 (Industry average Stock P/E: )
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.02
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Emami Ltd. is a Public Limited Listed company incorporated on 11/03/1983 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L63993WB1983PLC036030 and registration number is 036030. Currently Company is involved in the business activities of Manufacture of `ayurvedic’ or `unani’ pharmaceutical preparation. Company’s Total Operating Revenue is Rs. 2866.87 Cr. and Equity Capital is Rs. 44.12 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Personal CareEmami Tower, Kolkata West Bengal 700107investors@emamigroup.com
http://www.emamiltd.in
Management
NamePosition Held
Mr. R S AgarwalChairman Emeritus
Mr. R S GoenkaNon Executive Chairman
Mr. Harsha V AgarwalVice Chairman & Mng.Director
Mr. Mohan GoenkaVice Chairman & Whole Time Dir
Mr. Sushil K GoenkaWhole Time Director
Mrs. Priti A SurekaWhole Time Director
Mr. Prashant GoenkaWhole Time Director
Mr. Aditya V AgarwalNon Executive Director
Mr. C K DhanukaIndependent Director
Ms. Mamta BinaniIndependent Director
Mr. Rajiv KhaitanIndependent Director
Ms. Avani V DavdaIndependent Director
Mr. Anjan ChatterjeeIndependent Director
Mr. Anjani Kumar AgrawalIndependent Director
Mr. Debabrata SarkarIndependent Director
Mr. Anand RathiIndependent Director

FAQ

What is the latest fair value of Emami Ltd?

The latest fair value of Emami Ltd is ₹823.13.

What is the Market Cap of Emami Ltd?

The Market Cap of Emami Ltd is 34,571 Cr..

What is the current Stock Price of Emami Ltd as on 19 July 2024?

The current stock price of Emami Ltd as on 19 July 2024 is 792.

What is the High / Low of Emami Ltd stocks in FY 2024?

In FY 2024, the High / Low of Emami Ltd stocks is 813/413.

What is the Stock P/E of Emami Ltd?

The Stock P/E of Emami Ltd is 47.4.

What is the Book Value of Emami Ltd?

The Book Value of Emami Ltd is 56.0.

What is the Dividend Yield of Emami Ltd?

The Dividend Yield of Emami Ltd is 1.01 %.

What is the ROCE of Emami Ltd?

The ROCE of Emami Ltd is 32.6 %.

What is the ROE of Emami Ltd?

The ROE of Emami Ltd is 30.7 %.

What is the Face Value of Emami Ltd?

The Face Value of Emami Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Emami Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE