Stock Pick: Emami
Emami's operations in wide ranging products has made it a profitable option
By OLM Desk
Emami has a portfolio of over 300 products based on ayurvedic formulations. It currently has operations in over 60 countries. The company’s turnover at Rs.644 crore in the first quarter grew by 20 per cent, EBIDTA grew 49 per cent over the corresponding quarter in previous year. PAT, however, was impacted by Rs.60 crore mainly because of amortisation of Kesh King intangibles.
Why: Emami expects to spend Rs.200 crore on capex in FY17, diversification and acquisitions are in sync with growth.
What: Increasing competition in both the organised and unorganised sector.