Emami Limited

Consumer Defensive — Household & Personal Products · NSE

₹375.50+₹1.90 (+0.51%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, small-cap size, which brings sharper price swings, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Emami Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Emami Limited, together with its subsidiaries, manufactures and markets personal and healthcare products in India and internationally.

IndustryHousehold & Personal Products

SectorConsumer Defensive

Employees3,097

Annual revenue₹3,745 Cr

How does it make money?

Turns over ₹3,745 Cr a year. Of every ₹100 of sales, about ₹21 reaches shareholders as profit, with ₹27 left at the operating level before interest, tax and depreciation. Each of its 3,097 employees supports ₹1.21 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin26.8%

Net margin20.7%

Revenue / employee₹1.21 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., DABUR INDIA LTD, ITC LTD, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

HINDUSTAN UNILEVER LTD.P/E 42.5x · ROE 21.5%

DABUR INDIA LTDP/E 34.7x · ROE 17.2%

ITC LTDP/E 16.6x · ROE 27.4%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 28.6%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 26.5% against a peer median of 27.4% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE28.6%

ROE26.5%

Peer median ROE27.4%

What is the outlook?

17 analysts covering the stock expect revenue to grow about 8.6% and earnings to grow about 12.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+8.6%

Est. earnings growth+12.2%

Analysts17

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +11% while net margin moved +9% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+11%

Margin effect+9%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 3.7% — barely ahead of inflation
✗ Profit CAGR of only 6.6%
✗ Profit fell 16.2% in the latest year

Quality vs. Valuation

Company Quality

68/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

62/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

21.9x

3Y Median

34.5x

40 monthly readings · mean 32.8x · range 20.5x–56.3x

Sector Median

38.6x

median of 4 sector peers

🟢Current valuation is approximately 36% below its 3y median of 34.5x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 43% below the peer median of 38.6x.

vs. its own history

Cheap

34.5x median over 40 months · -36%

vs. sector peers

Cheap

38.6x median of 4 peers · -43%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

21.9x

P/B

5.61x

EV/EBITDA

16.1x

PEG

3.31

Dividend Yield

2.66%

What's Good / What's Bad

🟢 What's Going Well3

High return on capital employed
ROCE of 28.6% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 21.9x the stock trades 36% below its own median of 34.5x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Debt is rising
Total debt is up 79% over 3 years — worth checking what it funded.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 79% over 3 years, from ₹91 Cr to ₹162 Cr.
🔴High leverageFinancial
Debt/Equity of 5.54x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 28.6% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 36% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 43% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 5.54x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 3.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 25%✓ 26.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 3.7% CAGR
Latest reported year was 14.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹757 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 26%✓ 28.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 2 neutral · 3 weak

Market Cap

₹16,116 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.9x

Fair

Fairly valued against the generic band

P/B Ratio

5.61x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹17.15

Profitable

Profitable on a per-share basis

ROE

26.5%

Strong

Strong capital efficiency

ROCE

28.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

5.54x

High

High leverage

Revenue Growth (YoY)

14.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-16.2%

Falling

Profits are shrinking

Dividend Yield

2.66%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹757 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹375.5

P/E (Forward)

18.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

17.6%

Good

Healthy core-business profitability

Net Margin

19.1%

Good

Strong bottom-line conversion

Current Ratio

2.31

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.13

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

378.6 / 383.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,362 Cr	₹3,530 Cr	₹3,765 Cr	₹3,745 Cr	+3.7%
EBITDA	₹877 Cr	₹971 Cr	₹1,043 Cr	₹1,002 Cr	+4.6%
EBITDA Margin	26.1%	27.5%	27.7%	26.8%	—
PAT (Net Profit)	₹640 Cr	₹724 Cr	₹806 Cr	₹775 Cr	+6.6%
EPS	₹14.5	₹16.55	₹18.48	₹17.76	+7.0%
ROE	27.8%	29.6%	29.9%	26.5%	—
ROCE	28.4%	31.8%	32.8%	28.6%	—
Total Debt	₹91 Cr	₹94 Cr	₹90 Cr	₹162 Cr	+21.4%
Free Cash Flow	₹708 Cr	₹738 Cr	₹851 Cr	₹757 Cr	+2.2%

🟢 Revenue has grown at 3.7% a year over 3 years.

🟢 EBITDA has grown at 4.6% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 26.8% over 3 years.

🟢 PAT (Net Profit) has grown at 6.6% a year over 3 years.

🟢 EPS has grown at 7.0% a year over 3 years.

🔴 ROE has fallen from 27.8% to 26.5% over 3 years (-1.3 pts).

🟡 ROCE has held roughly flat at 28.6% over 3 years.

🔴 Total Debt has grown at 21.4% a year over 3 years.

🟢 Free Cash Flow has grown at 2.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,836 Cr

Total Liabilities

₹914 Cr

Total Debt

₹162 Cr

Cash & Equivalents

₹177 Cr

Operating Cash Flow

₹801 Cr

Capex

-₹43 Cr

Shareholding (proxy)

Institutional Holding

28.4%

Insider Holding

59.4%

Corporate Actions

Next Earnings

16 Nov 2026

Dividend Rate

₹10

Ex-Dividend Date

10 Feb 2026

Analyst Consensus

Recommendations

20 Buy · 3 Hold · 0 Sell

Target Price (Mean)

₹522.14

+39.1% vs CMP

Target Range

₹404 – ₹640

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
DABUR INDIA LTD	34.7x	17.2%
ITC LTD	16.6x	27.4%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

4 positive1 mixed1 general

Emami Share Price Near Yearly Low: Tech and Fundamentals

Univest, 13 Oct

Emami jumps 7% as board approves share buyback worth ₹282 cr

Business Standard, 17 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Emami share price jumps 4% ahead of buyback: What should investors do? Check stop loss, target

Livemint, 21 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Emami Q1 Profit Falls 15% as Costs Surge, Revenue Up 15%

HDFC Sky, 04 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Emami Limited Just Missed Earnings - But Analysts Have Updated Their Models

Simply Wall Street, 07 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Emami extinguishes 73 lakh buyback shares, capital falls to 42.92 crore

scanx.trade, 12 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong16.7/20

🟡Financial HealthAdequate12.5/20

🔴GrowthWeak7.4/20

🟢ProfitabilityStrong14.1/15

🟡ValuationFair9.7/15

🟡RiskModerate5.7/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 25%26.8%
✗Revenue growth stays above 4% a year3.7% CAGR
✓Free cash flow remains positive₹757 Cr
✓Debt / EBITDA stays below 2x0.2x
✓ROCE stays above 26%28.6%