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Emami Ltd

NSE: EMAMILTD BSE: 531162

504.35

(0.21)%

Mon, 09 Feb 2026, 00:57 am

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are covered by earnings (1.9x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
  • Emami's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Emami's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Emami's earnings are expected to grow significantly at over 20% yearly.
  • Emami's earnings growth is expected to exceed the India market average.
  • Emami's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Emami's earnings are expected to exceed the low risk growth rate next year.
  • Emami's net income is expected to increase by more than 50% in 2 years time.
  • Emami is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
  • Performance (ROE) is expected to be above the current IN Personal Products industry average.
  • An improvement in Emami's performance (ROE) is expected over the next 3 years.
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Cons

  • Cash flow for Emami is expected to increase but not above the 50% threshold in 2 years time.
  • Emami's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Emami's revenue is expected to grow by 7% yearly, however this is not considered high growth (20% yearly).
  • Emami's revenue growth is positive but not above the India market average.

health

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Pros

  • Emami is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Emami is profitable, therefore cash runway is not a concern.
  • Emami is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (230.4%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 3.7x debt.
  • Emami's cash and other short term assets cover its long term commitments.
  • Interest payments on debt are well covered by earnings (EBIT is 63.3x coverage).
  • Emami's level of debt (14.4%) compared to net worth is satisfactory (less than 40%).
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Cons

  • The level of debt compared to net worth has increased over the past 5 years (7.8% vs 14.4% today).
  • High level of physical assets or inventory.

management

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Pros

  • The average tenure for the Emami board of directors is over 10 years, this suggests they are a seasoned and experienced board.
  • Sushil's remuneration is lower than average for companies of similar size in India.
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Cons

  • Sushil's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.

past

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Pros

  • Emami's 1-year earnings growth exceeds its 5-year average (9.2% vs -9.2%)
  • Emami's earnings growth has exceeded the IN Personal Products industry average in the past year (9.2% vs 1.1%).
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Cons

  • Emami's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Emami used its assets less efficiently than the IN Personal Products industry average last year based on Return on Assets.
  • Emami's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
  • Emami has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

value

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Pros

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    Cons

    • Emami's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Emami's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Emami is overvalued based on assets compared to the IN Personal Products industry average.
    • Emami is poor value based on expected growth next year.
    • Emami is overvalued based on earnings compared to the IN Personal Products industry average.
    • Emami is overvalued based on earnings compared to the India market.
    • EMAMILTD underperformed the Personal Products industry which returned -5.3% over the past year.
    • EMAMILTD underperformed the Market in India which returned -14.5% over the past year.
    • NSEI:EMAMILTD is up 1.3% underperforming the Personal Products industry which returned 3.7% over the past month.
    • NSEI:EMAMILTD is up 1.3% underperforming the market in India which returned 8% over the past month.

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