Emami Profit Almost Doubles in Q1 FY22; Motilal Oswal Says Buy

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Emami Profit Almost Doubles in Q1 FY22; Motilal Oswal Says Buy

By Aditya Raghunath

Investing.com -- Kolkata-based fast-moving consumer goods company, Emami Ltd (NS: EMAM ), reported its Q1 FY22 numbers on Monday. Net profit surged 97% to Rs 77.79 crore compared to Rs 39.58 crore in Q1 FY21.

Revenue from operations came in at Rs 660.95 crore compared to Rs 481.34 crore in Q1 FY21. Emami said that the second pandemic wave and the ensuing lockdowns impacted both urban and rural markets.

"While the initial weeks of April witnessed sustained growth momentum, subsequent increase in covid cases led to a challenging phase over the month of May," it said. Director Mohan Goenka said, "We are very happy that despite challenges, we could post one of our most profitable quarterly results. Our profitability was not only higher than the base quarter, which was impacted by the nationwide lockdown, but also much superior to the normal first quarter of FY20."

The stock is trading at Rs 568.1, down 0.3%, as of this report. Motilal Oswal (NS: MOFS ) has given the stock a target of Rs 660 with a buy call.  It said that the company’s margin performance and outlook for FY22 were better than expected. It said that further re-rating could take place if sales growth could hit double digits. It has been weak growing at only 3.7% CAGR (compounded annual growth rate) from FY16-20.

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