Emami stock: Management sees margin pressure amid a decline in net profit

While Q2 revenue growth was flat and net profit declined 16%, management has indicated margin pressure in near term

Emami's stock valuation, in terms of price-to-earnings ratio, may be at the lower end of the fast-moving consumer goods pack, but it is unlikely to improve any time soon. While the rise in proportion of promoters' pledged shares, which the management expects to reduce in next 2-3 weeks, has weighed on sentiment so far, the disappointing September 2018 (Q2) performance announced on Tuesday could add pressure on the stock.   

The skin and healthcare major's consolidated top-line was flat at the year-ago level of Rs 6.3 billion, while net profit fell 16 per cent to Rs 826.8 million in Q2,