Emami Ltd

This 40 year old, with big and well known brands like Boroplus antiseptic, Navratna oil and talc powder, Fair and Handsome men’s fairness cream, Sona Chandi Chyawanprash, Zandu balm, Mentho Plus balm and Fast Relief, among others has done very well for Q3FY14. Its consolidated revenue came in at Rs. 585 crore, up 44% QoQ thanks to harsh winter (Chawanprash and Boroplus body lotion doing extremely well) coupled with rural demand, resulting in EBITDA at Rs. 198 crore, up 51% QoQ, strengthening EBITDA margin to 33.9%. Q3 PAT stood at Rs. 151 crore, up 88% QoQ, translating to an EPS of Rs. 6.64. Even on a YoY comparison, revenue and PAT are up 7% and 31% respectively.

For 9MFY13, consolidated revenue was Rs. 1,357 crore and EBITDA Rs. 432 crore, leading to EBITDA margin of 31.8%, thanks to lower input cost, judicious price rise coupled with declining advertising and promotion spends. PAT for the first nine months of FY14 stood at Rs. 291 crore, while it had ended FY13 with a PAT of Rs.315 crore. Clearly, with Q4 numbers to add on, the company is sure to end current fiscal on a high note. Its equity is very low at Rs. 22.70 crore (face value Re 1 each), even after a 1:2 bonus declared in June 2013. Promoters (Agarwal and Goenka families combined) held 72.74% stake, institutional investors 18.71% (of which, FIIs held 16.69%) leaving balance 8.55% under public float with over 23,000 retail investors.