Emami - A Safe Buy

CMP: 448

Emami Limited develops and distributes personal, beauty, and healthcare products in India and other countries. The Company manufactures herbal and Ayurvedic products, including antiseptic cream, prickly heat powder, pain balm, and cool oil.

Emami is a safe mid-cap buy with growing prospects. Its currently trading at a P/E of close to 30 with dividend yields of less than 1% in the last 12 months. Its trading at a fair P/E in its sector. Minimal liabilities. Revenues have grown steadily from 515 Crores to 1221 Crores in the last 5 years. Profits have grown more from 66 Crores to 227 Crores in the same period backed by NPM growth. NPM has grown from 13% to close to 19% over 5 years. Buy and accumulate on dips for long term gains.