Midcap FMCG Stock Declared 400% 2nd Interim Dividend, Fixes Record Date, "Buy" Says Motilal Oswal

Motilal Oswal initiates "Buy" on Emami Ltd., a midcap FMCG stock post Q3FY23. The brokerage has estimated a target price of Rs 485 apiece for the stock. With the given target price, the stock is likely to fetch 15% gain if you buy the stock at the current market price today. Stock on 3rd February 2023 in their Board meeting held declared 400% Second Interim Dividend for the year ending March 2023. The stock has a market capitalisation of Rs 18,526.09 crore. Here are the key takeaways about the stock:

Emami Ltd. Stock Performance & Dividend History

The stock of Emami is currently trading at Rs 424.25 apiece on NSE, up 1.02% from the previous close. The stock in the past 1 week has fallen 4.43%, and in 3 months it fell 11.99%, respectively. In the past 1 year, it fell 15.64%. It gave highest 40.08% positive return in the past 3 years. It has fallen 23.98% in the past 5 years. 

 
The stock recorded its 52 week high on 26 September 2022 at Rs 524 apiece and 52 week low on 20 June 2022 at Rs 393.40 apiece, respectively. The stock has declared 31 dividends since December 2000. It has declared 12 Interim Dividend and 19 Final declared, respectively.

Emami Ltd. declared Second Interim Dividend of Rs 4/- per equity share

The Board of Directors of Emami Ltd. in their regulatory filing on 3rd February 2023, said, "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 Second Interim Dividend of Rs. 4/- per equity share of Re. 1/- each fully paid-up i.e. 400% on the equity shares of the company for the Financial Year 2022-23. Record date for ascertaining the names of the members who will be entitled to receive the Second Interim Dividend is Monday, 13th February, 2023."

Motilal Oswal recommends "Buy" the stock for 485 apiece

Changes to the model have led to ~7% reduction in FY23 EPS because of weak near-term margin outlook. There is no material change to FY24 or FY25 EPS forecasts. HMN's sales CAGR of 8.2% over FY20-23 was far better than the 3% sales CAGR over FY16-20. If this trajectory leads to a sustainable and strong double-digit sales growth, aided by potential rural tailwind in FY24, re-rating could be on the cards. "We reiterate our Buy rating on the stock. Valuations are inexpensive at 20.5x FY24E EPS (~23x including amortization). We arrive at our TP of INR485 (valuing the company at 22x FY25, at a 40% discount to its peers on a pre-amortization basis)," the brokerage has said.

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.