Goldman Sachs has reiterated its buy rating on Emami with a target price of ₹825 per share, stating that the company’s growth trajectory and its current valuations appear disconnected, creating a favourable setup for medium-term upside. The brokerage said Emami’s reported earnings have been volatile in recent years, which has masked what it views as an otherwise stable and reasonable underlying growth profile. This volatility has weighed on near-term sentiment and valuations, but Goldman Sachs expects the company to deliver a meaningful recovery over the next four quarters.
According to the brokerage, Emami remains exposed to several dominant niche categories where it enjoys strong brand equity and high market shares, but this specialisation also brings risks. Goldman Sachs highlighted that the company must navigate potential shifts in competitive intensity within these niche segments and maintain stability in the leadership team to avoid execution lapses during the recovery cycle. The brokerage also pointed to external factors such as weather patterns, which have historically influenced demand for a portion of the portfolio.
Goldman Sachs believes valuations remain attractive, especially when seen in the context of sector peers. With input cost pressures easing and management focused on strengthening distribution and brand investments, the brokerage anticipates a steady improvement in performance metrics. It said Emami is well positioned to capture growth in core categories, supported by favourable category dynamics and resilient consumer demand.
Disclaimer: The views and recommendations above are those of Goldman Sachs. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
