Emami Limited (EMAMILTD) AI Stock Analysis

• Market Cap: ₹182.59B
• Dividend Yield: 1.91%
• Average Volume (3M): 27.33K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.80
• Revenue Growth: 0.84%
• EPS Growth: -2.44%
• Country: IN
• Employees: 3,289
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 7.60
• Shares Outstanding: 439,080,050
• 10 Day Avg. Volume: 15,423
• 30 Day Avg. Volume: 27,333
• PEG Ratio: 2.65
• Price to Book (P/B): 9.26
• Price to Sales (P/S): 6.55
• P/FCF Ratio: 29.31
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹589.00
• Price Target Upside: 11.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 19.76
• Revenue Forecast (FY): ₹39.05B

• Rating: 64 Neutral
• Price Target: ₹445.00 ▼(-15.42% Downside)
• Action: Reiterated Date: 11/08/25
• Date: Action: Reiterated 11/08/25

Emami Limited's overall stock score is primarily driven by its strong financial performance, characterized by robust revenue growth and profitability margins. However, the technical analysis indicates bearish momentum, which negatively impacts the score. The valuation is reasonable but not particularly attractive. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Very strong balance sheet and low leverage

An equity ratio of 76.26%, debt-to-equity of 0.03 and ROE near 29.9% indicate durable financial resilience. Low leverage reduces refinancing and interest-rate risk, preserving capacity to fund brand marketing, distribution and working capital needs without sacrificing financial flexibility over the medium term.

Robust free cash flow generation

FCF growth of 15.28% and OCF exceeding reported net income (OCF/Net = 1.11) show strong cash conversion. This durable cash generation supports repeatable reinvestment in brands, capex and inventory while enabling shareholder returns or debt reduction without relying on external financing.

High and sustainable profitability margins

Very high gross and operating margins indicate durable pricing power and efficient cost structure. Sustained margins (EBIT 38.7%, EBITDA 26.5%) provide scope to fund marketing, new SKUs and distribution, helping maintain market position and protect profitability through medium-term industry cycles.

Negative Factors

Increase in total liabilities to monitor

Although overall leverage is low, rising total liabilities could reflect growing trade payables, provisions or contingent items that may strain working capital or compress margins if persistent. Continued increases would erode liquidity buffers and reduce flexibility for brand investments.

Historical net income volatility

A past decline in net income signals earnings sensitivity to demand, input costs or one-off items. Even with strong recent margins, this volatility reduces predictability and raises the risk that margins and ROE could revert under negative shocks, complicating medium-term forecasting.

Limited earnings-call data and event disclosure

Absence of earnings-call details and guidance reduces transparency about management’s near-term strategy and outlook. Over 2–6 months this limits investors' ability to assess forward plans for pricing, new products or distribution, increasing forecasting risk and governance scrutiny.

Emami Limited Business Overview & Revenue Model

Company Description

Emami Limited manufactures and markets personal and healthcare products in India and internationally. It provides ayurvedic antiseptic cream, prickly heat powder, doodh kesar body lotion, vasocare herbal petroleum jelly, aloe vera gel, and hygiene products under the Boroplus brand; cool oil, extra thanda, gold ayurvedic oil, therapy ayurvedic body massage and stress relief oil, maxx cool talc, and cool talc under the Navratna brand; balm, balm ultra-power, quick relief roll-on, ortho vedic oil, healthcare products, pancharishta, nityam, kesari jivan, and ayurvedic hand sanitizers under the Zandu brand; radiance cream and instant radiance face wash for men under the Fair and Handsome brand; haircare products under the Kesh King brand; pain reliever balm under the Mentho Plus brand; and pain relief ointment under the Fast Relief brand. The company also offers prickly heat powder under the Dermicool brand; non sticky hair oil under the Emami 7 Oils in One brand; deodorants under the HE brand; hair colors under the Diamond Shine brand; talc under the Emami Golden Beauty brand; herbal fairness cream under the Emami Naturally Fair brand; home hygiene solutions under the Emasol brand; and normal, dry, and ultra-dry skin products under the Cream21 brand. Emami Limited was founded in 1974 and is headquartered in Kolkata, India.

How the Company Makes Money

Emami Limited makes money primarily by manufacturing (directly and/or via third-party/contract manufacturers) and selling branded FMCG products to a network of trade channels (e.g., distributors/stockists, wholesalers, and modern retail), as well as to institutional or other bulk buyers where applicable. Revenue is largely generated from product sales across its core categories—personal care, healthcare/OTC-style products, and beauty—where the company earns a margin between its net realization (after trade schemes/discounts and returns) and its cost to produce, procure, package, and distribute products, along with brand-building and selling expenses. Key earnings drivers typically include (i) volume growth and product mix (higher-margin brands and premium SKUs), (ii) pricing actions and input-cost management that affect gross margins, (iii) distribution reach and marketing effectiveness that support brand demand, and (iv) working-capital efficiency and supply-chain execution that influence profitability. Specific details on the exact category-wise revenue split, major named partnerships, or contract-manufacturing arrangements are null.

Emami Limited Financial Statement Overview

Summary

Emami Limited demonstrates impressive financial health with robust revenue growth, strong profitability margins, and effective debt management. The company's consistent performance in generating free cash flow and maintaining a high equity ratio underlines its financial stability and operational efficiency. While slight concerns exist regarding fluctuating net income and increasing liabilities, the overall trajectory remains positive, reflecting a well-managed business poised for continued success.

Income Statement

Emami Limited has shown a consistent increase in revenue over the years, with a notable revenue growth rate of 6.45% from 2024 to 2025. The company maintains a strong gross profit margin of 68.64% and a net profit margin of 21.17% in 2025, indicating efficient cost management and profitability. The EBIT and EBITDA margins of 38.70% and 26.52% respectively, further highlight the company's strong operational performance. However, the decline in net income from 2022 to 2023 poses a slight concern for sustained profitability.

Balance Sheet

The balance sheet reflects a solid equity base with an equity ratio of 76.26% in 2025, emphasizing financial stability. The debt-to-equity ratio is low at 0.03, showcasing prudent debt management. Return on equity (ROE) is strong at 29.92%, indicating effective use of shareholder funds to generate profit. A notable strength is the reduction in total debt over the years, though the increase in total liabilities from 2024 to 2025 may warrant monitoring.

Cash Flow

The cash flow statement highlights a robust free cash flow growth rate of 15.28% from 2024 to 2025, driven by increased operating cash flow. The operating cash flow to net income ratio of 1.11 indicates healthy cash generation relative to reported profits. The free cash flow to net income ratio of 1.06 suggests strong cash conversion, although the consistent negative investing and financing cash flows could imply ongoing capital investments and debt repayments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	37.15B	38.09B	35.78B	34.06B	31.87B	28.81B
Gross Profit	25.67B	26.15B	23.78B	22.04B	20.58B	19.34B
EBITDA	9.98B	10.10B	9.90B	9.14B	10.41B	9.53B
Net Income	7.54B	8.06B	7.24B	6.40B	8.39B	4.55B
Balance Sheet
Total Assets	36.71B	35.34B	32.80B	31.10B	30.57B	25.20B
Cash, Cash Equivalents and Short-Term Investments	8.90B	8.26B	4.09B	2.99B	1.83B	4.46B
Total Debt	719.60M	897.80M	939.56M	905.10M	2.82B	1.01B
Total Liabilities	7.42B	8.40B	8.22B	7.97B	9.83B	7.58B
Stockholders Equity	29.31B	26.95B	24.47B	23.03B	20.77B	17.63B
Cash Flow
Free Cash Flow	2.15B	8.51B	7.38B	7.08B	1.60B	8.88B
Operating Cash Flow	2.35B	8.96B	7.79B	7.49B	6.44B	9.22B
Investing Cash Flow	-892.30M	-3.40B	-2.05B	-1.13B	-2.35B	-2.27B
Financing Cash Flow	-1.80B	-5.00B	-5.63B	-6.08B	-4.02B	-6.88B

Emami Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 526.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:EMAMILTD, the sentiment is Negative. The current price of 526.15 is above the 20-day moving average (MA) of 465.54, above the 50-day MA of 485.19, and below the 200-day MA of 535.24, indicating a bearish trend. The MACD of -16.60 indicates Positive momentum. The RSI at 21.67 is Positive, neither overbought nor oversold. The STOCH value of 3.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:EMAMILTD.

Emami Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CASTROLIND	77 Outperform	₹184.13B	20.06	―	6.86%	6.83%	8.79%
FINEORG	68 Neutral	₹131.48B	42.68	―	0.26%	5.73%	-7.74%
ZYDUSWELL	66 Neutral	₹128.49B	-90.62	―	0.28%	14.55%	-20.61%
EMAMILTD	64 Neutral	₹182.59B	18.06	―	1.91%	0.84%	-2.44%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JYOTHYLAB	61 Neutral	₹80.60B	31.99	―	1.24%	1.62%	-7.32%
CROMPTON	57 Neutral	₹158.63B	41.30	―	1.16%	0.73%	-5.88%

Emami Limited Corporate Events

Emami Withdraws From IIFL Global Investors’ Conference Citing Exigencies

Emami Limited has notified the stock exchanges that it will not participate in the IIFL 17th Enterprising India Global Investors’ Conference scheduled to be held physically in Mumbai on 25 February 2026. The company cited certain exigencies as the reason for cancelling its planned attendance, temporarily reducing an opportunity for direct engagement with analysts and institutional investors.