Last Updated:
Shares of FMCG company Emami declined by 4.75%, reaching a low of Rs 585.10 per share during intraday trading; Key points for investors
Emami share falls 5%
Shares of FMCG company Emami declined by 4.75%, reaching a low of Rs 585.10 per share during intraday trading on Tuesday, February 4, 2025, on the National Stock Exchange (NSE). The drop in share price coincided with the company’s announcement of a second interim dividend for the financial year 2024-25, as Emami shares traded ex-dividend today.
In a regulatory filing, Emami’s board of directors declared a second interim dividend of Rs 4 per equity share (Re 1 each, fully paid-up), which translates to a 400% dividend on 43,650,000 equity shares for FY25.
The record date to determine eligible members for the dividend is Tuesday, February 4, 2025.
Earlier, in November 2024, Emami had announced an interim dividend of Rs 4 per share. At the current market price, the company’s dividend yield stands at 1.70%.
Emami is a leading FMCG player in India, known for manufacturing and marketing personal care and healthcare products. Its portfolio includes popular brands such as Navratna, BoroPlus, and Zandu Balm, offering over 300 products across categories like hair care, skincare, and Ayurvedic healthcare.
Stock Performance
Emami shares have shown a mixed performance over the past year, up 17%, but have dropped around 21% over the last six months. The stock reached a 52-week high of Rs 860 per share on September 6, 2024, and a 52-week low of Rs 417.10 on March 15, 2024.
As of 12:35 PM on Tuesday, Emami shares were trading at Rs 585.50, down 4% from their previous close of Rs 614.30 on the NSE. In total, nearly 0.23 million shares, valued at approximately Rs 13.94 crore, exchanged hands on the BSE and NSE.
Meanwhile, the benchmark equity indices were trading higher, with the BSE Sensex gaining 805 points to reach 77,992, and the Nifty50 rising 1% to around 23,593.30.
Brokerage Views
IndSec brokerage highlighted key growth drivers for Emami, including volume-driven growth from market share gains, the success of the distribution expansion project (Project Khoj), and strong performance from the international business. The brokerage revised its earnings estimates for FY25-27, with a revenue/EBITDA/PAT CAGR of 8.4%/9.2%/11.4%. They have set a target price of Rs 762 and updated their rating to BUY.
Khambatta Securities also maintained a positive outlook, noting that Emami’s sales growth in 2Q FY25 was impacted by higher food inflation, affecting discretionary consumption. However, they expect demand to improve in the second half of the financial year, especially with a strong winter season forecast. Emami’s recent product launches and brand revamps, including the Kesh King and male grooming range, are expected to contribute to future growth. Khambatta Securities valued Emami at Rs 944, with a BUY recommendation.
The highest target price for Emami is Rs 950, set by Anand Rathi with a BUY recommendation.