Thursday, March 13, 2008


Emami is a midsize FMCG company in india. Company has brands like Navratna, Himani Boroplus, Himani Sona Chandi Chyavanprash etc... The company has earned following EPS for the last 7 years:
2002,2003 2004 2005 2006 2007 2008E
Based on Graham's criteria of 25 times last 7 years earnings, the price comes to about 165 but 20 times last year earnings is at 260. The company has very small debt. It is one of the prominent and should be considered large for the FMCG industry. The recent market meltdown made the stock correct from 360 to 225 and seems cheap. It has grown fastest in terms of percentage net profit growth over the last 10 years (25% profit CAGR). 87% shareholding belongs to promoters. Pays Rs. 2 as dividends (excluding special dividend of Rs. 2 last year).
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