Amid its strong quarter four results, the brokerage firms being bullish on Emami has raised the price target of the company’s shares. On Tuesday, the FMCG (Fast Moving Consumer Goods) company reported a three-fold rise in its fourth quarter of the financial year 2020-2021. 

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Emami reported its consolidated net profit to Rs 87.73 crore for the March-ended quarter in FY21 as compared to Rs 22.75 crore in the same period year ago. 

CLSA maintained an Outperform call on Emami, by raising the price target at Rs 520 per share. The stock is currently trading over one per cent at Rs 505 per share as compared to Rs 500 per share in the previous close. 

The brokerage firm focused on topline recovery, near-term margin pressure expected. It cuts FY22 EPS estimates by five per cent and keep unchanged for FY23. 

Similarly, Sharekhan Research maintained Buy on Emami with a target price of Rs 570 per share. It mentioned that the Q4 was boosted due to strong volume growth and expect revenues and profit to grow at CAGR of 15 and 19 per cent over the FY21-23 period. 

The brokerage firm also pointed out, the promoters pledging reduced to 33 per cent and a strong cash balance of Rs 350 crore plus, adding further, it states valuation attractive at 24x. 

Emami’s revenue from operations in the Q4 of FY21 jumped 37.2 per cent to Rs 730.76 crore as against Rs 532.68 crore in the year-ago period, the company said in a regulatory filing. 

Emami Director Mohan Goenka said the company's domestic business grew by 44 per cent and international business grew 28 per cent in the March 2021 quarter and "we continued to improve our sales and profitability quarter-on-quarter". 

Similarly, another Director of Emami, Harsha V Agarwal said all major brands of the company grew over 30 per cent during the quarter with the healthcare range's performance leading the growth chart.