Emami (EMAMILTD)

FairStock Score: 70/100 — STEADY

Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business I can understand, with durable brands and a strong balance sheet. Emami, in personal care, shows quality and a likely brand moat: ROE 29.47%, ROCE 32.42%, debt/equity only 0.06, and free cash flow of ₹551 Cr. Its Piotroski F-Score is 8/9 and Altman Z-Score 6.20, so financial distress is not my worry. Promoter holding of 54.84% aligns interests, and dividend yield of 2.98% pays me while I wait. Latest quarter sales were ₹1,152 Cr with net profit ₹319 Cr. But Graham would remind me price matters. At ₹403.30, P/E is 23.53 and P/B 6.02, while book value is ₹66.99. The Graham Number is only ₹158.65, giving a margin of safety of -191.58%; I am not buying at a discount to assets/earnings. DCF intrinsic value of ₹407.66 is broadly equal to the market price, not a bargain. Growth is mixed: sales growth 14.90% and five-year revenue CAGR 7.49% are moderate, but profit growth is -16.20%. That profit decline needs explanation before I get excited. The EV/EBITDA of 1.61 looks anomalously cheap against P/E and P/B, so I would verify it, not take it at face value. The 52-week range ₹361.25–₹556.15 shows the stock has corrected but not collapsed. FairStock score 70/100 STEADY fits a stalwart. This is a good business, not a great price. I would watch profit recovery, operating cash conversion, volume growth in personal care, and any margin pressure. At around DCF value, I would wait for a wider discount or clearer earnings rebound before adding.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer