MOSL: EMAMI (Buy)-Disappointing volumes despite weak base-Margin outlook improving
EMAMI: Disappointing volumes despite weak base; Margin outlook improving
(HMN IN, Mkt Cap USD2.1b, CMP INR326, TP INR380, 17% Upside, Buy)
- Consolidated net sales grew 5.1% YoY to INR6.6b (v/s est. INR7b). Domestic sales grew a meager 2% (with 1% volume growth) while International business saw sales increase 20% YoY. Domestic volumes and sales growth were poor despite the weak base in 2QFY19. Cons. EBITDA grew 3% YoY to INR1.9b (v/s est. INR2b). PBT was up 8.5% YoY to INR1.8b (in-line). PAT before amortization was up 12.6% YoY to INR1.6b (v/s est. INR1.5b).
- Consolidated sales/EBITDA/PAT grew 5.4%/6.6%/16.5% in 1HFY20.
- In the domestic business, sales of (a) Kesh King declined 11% YoY, (b) Navratna declined 3% YoY, and (c) Male grooming declined 32% YoY. On the other hand, sales of (a) 7 Oils in One grew 25% YoY, (b) Pain management increased 4% YoY, and (c) BoroPlus saw sharp 39% YoY increase. Healthcare range saw flat sales
Emami markets personal and health care products. Co.'s brands and products include: Boroplus - antiseptic cream; Navratna - cool oil; Zandu Balm for relief from headaches, backache and cold; Fair and Handsome - cream for men; Mento plus balm for relief of headaches; Fast Relief - pain relief ointment; Zandu Sona Chandi - for immunity; Kesari Jivan - health supplement; Vasocare - herbal skin jelly; Zandu healthcare offers products from healthcare to lifestyle; 7 Oils in One - damage control hair oil and HE - deodorants. Co.'s subsidiaries are engaged in personal and healthcare, newsprint, ball pen tips manufacturing, retail, pharmacy, art, edible oils, healthcare, cement and bio diesel.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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