4
April 29, 2016
April 29, 2016
Investment Rationale
In 9MFY16, the company’s domestic business grew by 18.4% in a difficult environment that has witnessed lower rural wage growth and an overall sluggish consumer sentiment. This has been made possible by its continued focus on innovations, competitive marketing investments and strong on-ground execution. Its power brands continued to maintain leadership in key categories. Cooling Oils, Balms, Boroplus Antiseptic cream and Fair and Handsome maintained their leadership positions with 9M FY16 volume market shares at 60.5%, 56.2%, 77.7% and 62.6% respectively.
New brand extensions - Fair and Handsome Complete Winter Solution and BoroPlus Cocoa Soft Moisturising Lotion launched recently are expected to add fillip to its existing brand portfolio. New product from the Zandu stable - Zandu Pure Honey with no added sugar, targeted at health conscious consumers has also received encouraging response in the market and the company expects it to do well in the coming months.
Emami Limited
Technical Recommendation*
1006.75 CMP (`)
Stop Loss– Closing (`) 910
Target (`) 1220
Time Horizon 1-2 Months
Data Matrix
Equity (`Cr) 22.70
EPS (`) 18.57
Book Value (`) 65.02
Face Value (`) 1
P/E (x) 53.78
Dividend Yield (%) 0.70
Beta 0.54
52 Week High / Low 1365 / 870
ROE% 50.04
Avg.Weekly Volume 83904
Technical Outlook Technical Chart (Weekly)
Emami consolidated within 65-115 for three years post listing and witnessed upside breakout from that range in July, 2009. It has garnered exceptional return for the investors since then.
Like any other stock, it has also experienced corrective phases but always upheld the support zone of long term average of 200 EMA on the weekly chart; shows long term uptrend in place.
In its previous corrective move during 2014, it retraced to the support zone of 100 EMA on the weekly chart and followed by strong rebound thereafter. We have seen the similar profit taking in last eight months and now look upbeat to resume its long term uptrend. Traders should accumulate in the given range of 990-1010 with close
below stop loss of 910 for the target of
1220.
Source : Capitaline
BSE Code 531162
NSE Code EMAMILTD
Sector FMCG
* Please note, Master Pick recommendation is “valid for taking position” only in next five trading sessions from the day of recommendation and in the given range.
Disclaimer: http://www.religareonline.com/research/Disclaimer/Disclaimer_rsl.html
Follow-up of Recommendations
Rec. Date Scrip Name Rec. Price Exited On Return Remarks
11-March-2016 TVSMOTOR 287.95 05-April-2016 9.39 Booked Profit as trailed S/L triggered at
315
04-March-2016 CIPLA 533.70 29-March-2016 -4.44 Booked loss as trailed S/L triggered at
510
19-Feb-2016 MARICO 232.05 28-March-2016 2.37 Booked Profit as trailed S/L triggered at
238
22-Jan-2016 EMAMILTD 1010.05 10-March-2016 -5.54 Booked loss as trailed S/L triggered at
954
05-Feb-2016 PIDILITIND 596.95 26-February-2016 0.52 Booked Profit as trailed S/L triggered at
600
29-Jan-2016 BERGEPAINT 266.45 13-February-2016 -3.17 Booked loss as trailed S/L triggered at
258
01-Jan-2016 JKTYRE 115.95 13-January-2016 -10.31 S/L triggered at 104
18-Dec-2016 UPL 422.15 14-January-2016 -2.88 Booked loss as trailed S/L triggered at
410
24-Dec-2015 DHFL 227.15 07-January-2016 -3.15 Booked loss as trailed S/L triggered at
220
4-Dec-2015 IPCALAB 772.80 07-January-2016 -8.77 S/L triggered at 705
20-Nov-2015 COLPAL 962.05 06-January-2016 -0.73 Booked loss as trailed S/L triggered at
955
27-Nov-2015 DISHTV 105.20 14-December-2015 -8.74 Booked loss as trailed S/L triggered at
96
06-Nov-2015 MARICO 402.75 18-December-2015 12.97 Target Met at 455
24-Sept-2015 IBULHSGFIN 721.55 9-October-2015 3.94 Booked Profit as trailed S/L triggered at
750
19-June-2015 BATAINDIA 1022.55 17-July-2015 19.30 Target Met at 1220
Scrip Name Rec. Date Rec. Price CMP (29 April,2016) Closing S/L Target
BRITANNIA 22-April-2016 2822.60 2862.60 2630 3200
NCC 08-April-2016 72.75 78.10 73* 89
GPPL 01-April-2016 172.35 170.60 165 202
VOLTAS 18-March-2016 269.10 293.50 285* 325
* Closing S/L
Trialed
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S. No. Statement Answer
Tick appropriate
Yes No
I/we or any of my/our relative has any financial interest in the subject company? [If answer is yes, nature of Interest is given below this table]
No
I/we or any of my/our relatives, have actual/beneficial ownership of one per cent. or more securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance?
No
I / we or any of my/our relative, has any other material conflict of interest at the time of publication of the research report or at the time of public appearance?
No
I/we have received any compensation from the subject company in the past twelve months?
No
I/we have managed or co-managed public offering of securities for the subject company in the past twelve months?
No
I/we have received any compensation for brokerage services from the subject company in the past twelve months?
No
I/we have received any compensation for products or services other than brokerage services from the subject company in the past twelve months?
No
I/we have received any compensation or other benefits from the subject company or third party in connection with the research report?
No
I/we have served as an officer, director or employee of the subject company? No
I/we have been engaged in market making activity for the subject company? No
Team Members
Ajay Kumar Srivastava [email protected]
Ajit Mishra [email protected]
Swati Saxena [email protected]
SS..No. Name
(s) of RA. Signtures of RA
Serial Question of question which the signing RA needs to make a separate declaration / answer
Yes No.
