Emami Ltd.
NSE: EMAMILTDEmami Ltd.: A 30-second snapshot
Emami Limited (₹399.1) is an FMCG company trading 33% lower over the past 12 months and 21.1% below its 200-DMA, with a debt-to-equity ratio of 5.54 that stands well above sector norms. Trailing PE of 22.4 is among the lowest in the peer group (ITC at 16.9, HUL at 46.1, Nestle at 76.5), while ROE of 27.61% is mid-tier for the sector. Five-year revenue and earnings growth are both negative (-3.9% and -11.8% respectively), and the quality score of 40 ranks last among 6 tracked FMCG peers.
P/E
22.4
Forward P/E
18.4
ROE
+27.6%
Debt / Equity
5.54
Profit Margin
+20.5%
Div. Yield
+3.0%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
48/100
News
8 headlines · 2 positive · 1 negative
EMAMILTD: FY26 saw lower revenue and profit, but D2C and new-age brands showed strong growth - TradingView
TradingView
EMAMILTD: FY26 revenue and profit remained stable; acquisitions and leadership moves support future growth - TradingView
TradingView
Emami Limited Reports Earnings Results for the Fourth Quarter and Full Year Ended March 31, 2026 - marketscreener.com
marketscreener.com
Emami Falls 3% on Weak Q4 Results, Margin Pressure - HDFC Sky
HDFC Sky
Emami approves agreement to buy 60% stake in IncNut Digital for up to 3.21 billion rupees - marketscreener.com
marketscreener.com
Recent context
- ·FY26 full-year results (May 2026) showed lower consolidated revenue and profit versus FY25, with Q4 specifically reporting weak results and margin pressure; D2C and new-age brands were highlighted as bright spots within an otherwise soft overall performance.
- ·Emami approved an agreement to acquire a 60% stake in IncNut Digital for up to ₹3.21 billion (announced May 2026), extending its new-age digital brand portfolio at a time when the core balance sheet carries a D/E of 5.54 with a rising trend.
- ·Analyst coverage across 22 analysts shows a mean rating of 1.59 on a 1–5 scale (lower = more constructive), reflecting a constructive but not unanimous view among sell-side analysts covering the stock.
Strengths
- +ROE of 27.61% has been above 15% in 4 of the tracked years, placing it 4th among 6 FMCG peers and above HUL (21.6%) and Tata Consumer (6.94%).
- +Profit margin of 20.51% is notable for a consumer products business, and FCF was positive in 4 of available years, indicating the core business generates cash despite elevated leverage.
- +Dividend yield of 3.01% is the highest among the 6 tracked peers, and trailing PE of 22.4 represents the 2nd lowest multiple in the peer set (behind ITC at 16.9).
- +D2C and new-age brand segments reported strong growth in FY26 per company disclosures, suggesting incremental revenue channels alongside the legacy portfolio.
Weaknesses
- −D/E of 5.54 with a rising debt trend is the highest leverage profile in the FMCG peer group; the IncNut Digital acquisition (up to ₹3.21 billion for 60% stake) adds further obligations to an already stretched balance sheet.
- −Five-year revenue growth of -3.9% and earnings growth of -11.8% indicate a sustained multi-year contraction; FY26 full-year results confirmed lower revenue and profit versus the prior year.
- −Quality score of 40 ranks last (6th of 6) among FMCG peers; Q4 FY26 results were accompanied by noted margin pressure, and the consistency score of 51 reflects uneven performance across the tracked period.
- −Stock is 37.07% below its 52-week high, down 33% over 12 months and 16.81% over 3 months, trading below both the 50-DMA (₹426.7) and 200-DMA (₹505.88) with RSI at 32.68.
Open questions
- ?Does the rising debt-to-equity ratio (5.54, trending higher) reflect a deliberate acquisition-led growth strategy, and how does Emami plan to deleverage given the negative 5-year revenue growth trajectory?
- ?Can the strong D2C and new-age brand momentum (IncNut Digital, other digital properties) realistically offset structural volume pressure in legacy categories to return consolidated revenue growth to positive territory?
- ?How durable is the 27.61% ROE given that 5-year earnings growth is -11.8% — does the current profitability reflect cyclical cost tailwinds or a structurally defensible margin profile?
- ?At what point does the 37% drawdown from the 52-week high begin to reflect a re-rating of the business model versus a temporary market dislocation, and what operational metrics would signal which interpretation is more likely?
Peer comparison: FMCG
Ranks 6 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| EMAMILTD | Emami Ltd.You're viewing | 22.4 | +27.6% | 40 |
| Industry avg | across 5 peers | 52.4 | +37.5% | 51 |
| NESTLEIND | Nestle India Ltd. | 76.5 | +76.3% | 61 |
| HINDUNILVR | Hindustan Unilever Ltd. | 46.1 | +21.6% | 58 |
| BRITANNIA | Britannia Industries Ltd. | 49.1 | +53.3% | 50 |
| TATACONSUM | Tata Consumer Products Ltd. | 73.5 | +6.9% | 45 |
| ITC | ITC Ltd. | 16.9 | +29.3% | 41 |
Technical state
Current price
₹399.10
SMA 50
₹426.70
SMA 200
₹505.88
RSI (14)
32.7 (neutral)
From 52w high
-37.1%
1Y return
-33.0%
3M return
-16.8%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 5.54 with a rising debt trend is materially elevated for an FMCG company; sector peers (HUL, ITC, Nestle, Britannia, Tata Consumer) typically operate with D/E well below 1.0. The pending acquisition of a 60% stake in IncNut Digital for up to ₹3.21 billion adds incremental leverage at an already stretched balance sheet.
- high5-year revenue growth of -3.9% and 5-year earnings growth of -11.8% indicate sustained multi-year contraction in both top-line and bottom-line. Consistency score of 51 and FCF positive in only 4 of available years reinforce the deteriorating earnings trajectory.
- mediumPrice of ₹399.1 is 6.5% below the 50-DMA (₹426.7) and 21.1% below the 200-DMA (₹505.88). Stock is down 33% over 12 months and 37.07% from its 52-week high, with the nearest support at ₹385.5 (3.4% below current price).
- mediumQuality score of 40 ranks last (6th of 6) among FMCG peers, below ITC (41), Tata Consumer (45), Britannia (50), HUL (58), and Nestle (61). FY26 results confirmed lower revenue and profit, and Q4 saw explicit margin pressure per news coverage.
Cross-section contradictions
- ROE of 27.61% is the 4th highest among 6 peers and profit margin stands at 20.51%, yet 5-year earnings growth is -11.8% and the quality score ranks last in the sector — recent profitability metrics have not translated into durable multi-year earnings expansion.
- News coverage notes strong D2C and new-age brand growth in FY26, yet consolidated revenue and profit both declined for the full year, creating a divergence between segment-level momentum and group-level financial outcomes.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days