Emami Outlook: There is a golden opportunity to earn 25 percent profit on investment in the shares of Emami, which makes Boroplus.
Emami Outlook: There is a golden opportunity to earn 25 percent profit on investment in the shares of Emami, which makes Boroplus. Market experts believe that Emami’s recent trading deal can see a sharp jump in its shares. Emami has bought cold powder giant Dermicool from its company Reckitt Benckiser India and the company had informed about this in a stock exchange filing last Friday. The deal was worth around Rs 432 crore. According to market analysts, after this deal, Emami’s stock will make you feel cool and cool by keeping your pocket warm this summer. It is currently at a price of Rs 446.75 on BSE.
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Market experts are placing bets because
The summer sales were affected for the last two years due to the lockdown imposed due to the Corona epidemic, which affected the overall category growth. However, this time the situation is looking better. The ‘Prickly Heat and Cool Talc’ business in India is about Rs 760 crore, which is a CAGR of 12 percent (compound annual) between the calendar year 2016-2019. Compared to the same period, the turnover of the talcum market of Rs 2500 crore grew at a CAGR of just 5 per cent.
Dermicool is the third largest company in the prickly heat and cool talc category and with the acquisition, Emami will become the largest player in this category with a combined shareholding of 45 per cent. Nicil has 34 per cent market share while Emami’s Navratna Cool is the second largest brand. Dermicool is prickly heat product while Navratna is cooling talcum and the distribution channels of both the businesses are same.
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Target price of Rs 540
According to brokerage firm Motilal Oswal, Emami’s shares are getting cheap now. Emami has benefited from higher growth prospects in Prickly Heat and Cool Talc, growing share in the talcum powder segment and the geographical expansion of Dermicool. In such a situation, the brokerage firm has given a buy rating to Emami and has fixed a target price of Rs 540. On Tuesday (March 29) it had closed at a price of Rs 431.75, which means that investors can get about 25 percent profit, while brokerage and investment group CLSA has retained its outperform rating and the target price is Rs 470. Fixed on.
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)
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