1st Interim Dividend of Rs 4: Record Date 18th November; Buy Fresh Stake In FMCG Stock?

One of India's top FMCG companies, Emami Ltd. was established in 1974 and produces and markets healthcare and personal care products. Trusted premium brands including Navratna, BoroPlus, Fair & Handsome, Zandu Balm, Mentho Plus, and Kesh King are among Emami's collection of more than 450 varied products. Through its network of more than 4,000 distributors, Emami products can be found in more than 4.9 million stores throughout India. Its global reach extends to more than 70 countries, including those in SAARC, MENAP, SEA, Africa, Eastern Europe, and the CIS. Emami Ltd., the flagship company of the diversified Emami Group, has a market valuation of around Rs 29,000 crores.

Emami Dividend

"Further pursuant to Regulation 30 & 43 (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Board of Directors of the company in its meeting held today has declared payment of 1st Interim Dividend of Rs. 4/- per equity share of Re. 1/- each fully paid-up i.e. 400% on 43,65,00,000 equity shares of the company for the Financial Year 2024-25. Record date for ascertaining the names of the members who will be entitled to receive the Interim Dividend is 18th November, 2024," said the company in a stock exchange filing.

Emami Financials

The company's revenue from operations increased by 3% to Rs 890.59 crore in the September 2024 quarter from Rs 864.87 crore during the same time last year. Revenue increased 6.3% from Rs 1,690.53 crore in Q2FY24 to Rs 1,796.66 crore in Q2FY25. Year on year (YoY), total income increased from Rs 875.98 crore to Rs 912.15 crore. The quarter's profit after tax (PAT) climbed 17.2% to Rs 210.99 crore from Rs 179.99 crore the year-ago quarter. PAT increased 14.2% to Rs 361.59 crore for the half-year from Rs 316.74 crore. In the second quarter, operating expenditures increased slightly from Rs 631.20 crore to Rs 640.12 crore.

Mr Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited said: "We are pleased to close the first half of the year with strong performance, achieving 6% revenue growth, 10% EBITDA growth, and a 16% profit increase despite macroeconomic challenges. For H2 FY25, we expect stronger offtakes driven by improved urban demand and stable seasons ahead. Our international business demonstrated resilience despite geopolitical challenges, delivering double-digit growth, excluding Bangladesh. Besides good performance of our existing brands, strategic investments and the recent launch of 11 new domestic products are set to boost consumer confidence and drive double-digit revenue growth in the second half."

Mr Mohan Goenka, Vice Chairman and Whole-Time Director, Emami Limited said: "Organized channels like Modern Trade, e-Commerce, and Institutional sales now contribute 26.6% to our domestic business, a 190-basis point increase in the first half. We remain committed to achieving high single-digit revenue growth and double-digit EBITDA growth for FY25. The Q3 relaunch of Fair and Handsome and focused efforts on Kesh King strengthen our confidence in driving H2 growth. With a favourable winter forecast, we expect strong performance from our winter portfolio."

Emami Share Price Target

Mandar Bhojane - Equity Research Analyst at Choice Broking said, "Emami Ltd (EMAMILTD) is currently trading within a consolidation range between 650 and 700, showing a sideways trend. This range-bound movement suggests ongoing consolidation, and the stock is holding above its 200-Day EMA, currently at 660, which acts as a moderate support level. A breakout above the 700 mark could potentially propel the stock toward a short-term target of 760. On the downside, immediate support is situated between 660 and 650, presenting a potential buying opportunity for investors looking to enter on dips."

"The Relative Strength Index (RSI) stands at 43.29, indicating that the stock is neither overbought nor oversold, which aligns with its current consolidation phase. For prudent risk management, a stop-loss at 630 is recommended to guard against potential reversals. In conclusion, based on the technical analysis and current market conditions, EMAMILTD presents a promising buying opportunity near 660 if a bullish reversal is observed. This setup could be favorable for those aiming for a 760 target, provided that appropriate risk management strategies are in place," the analyst further added.

Disclaimer

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