Emami (EMAMILTD)
Slow GrowerFairStock Score: 70/100 — STEADY
Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 1/1
Key Financials
| Current Price | ₹403.3 |
| Market Cap | ₹17,604.04 Cr |
| P/E Ratio | 23.53 |
| ROCE | 32.42% |
| ROE | 29.47% |
| Dividend Yield | 2.98% |
| Profit Growth | -16.2% |
| Debt/Equity | 0.06 |
| Sales Growth | 14.9% |
| Free Cash Flow | ₹551 Cr |
| Promoter Holding | 54.84% |
| 52-Week Range | ₹361.25 — ₹614 |
| Sector | Personal Products |
| Book Value | ₹66.99 |
Strengths
- Exceptional profitability: ROE 29.47% and ROCE 32.42%
- Near-zero leverage with Debt/Equity of 0.02
- Strong cash generation: FCF of ₹551 Cr and latest quarter net profit of ₹319 Cr
- Healthy balance sheet confirmed by Piotroski F-Score of 8/9 and Altman Z-Score of 6.20
- Promoter holding of 54.84% aligns management with minority shareholders
Concerns
- Growth is nearly stalled: sales growth 2.14%, profit growth 0.13%, and 5-year revenue CAGR only 5.74%
- Valuation is demanding: P/E of 25.13 and P/B of 7.59 for a slow grower
- DCF intrinsic value of ₹407.66 is below the current price of ₹468.65
- Graham Number of ₹158.65 implies a -191.58% margin of safety, leaving no downside protection
AI Analysis
Looking at Emami, I see a well-built consumer franchise that is not growing. The 29.47% ROE and 32.42% ROCE are the kind of returns I like—they suggest a durable moat, pricing power, and a management that knows how to deploy capital without leverage, as the 0.02 debt/equity confirms. The balance sheet is rock solid: Piotroski F-score of 8, Altman Z-score of 6.20, and free cash flow of ₹551 crore even in a slow year. Promoters owning 54.84% also tells me my interests are aligned. But my circle requires a margin of safety, and at ₹468.65 I don't have it. Sales growth is just 2.14%, profit growth 0.13%, and five-year revenue CAGR is only 5.74%. This is a slow grower dressed in a premium 25.13 P/E and 7.59 P/B. The DCF intrinsic value is ₹407.66, below the market price, and Graham's number—at ₹158.65—makes the margin of safety -191.58%. Even the 2.16% dividend yield cannot compensate for paying up for stagnant earnings. I would rather wait. This is a company I'd study and keep on my watchlist, but not buy at this price. Slow, steady, high quality—but quality has a price, and today's price is not one that offers me protection. If the business can restart growth while keeping those high returns, the picture changes. Until then, patience is better than paying up.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer