Emami stock: Analysts worried about new launches and high input costs

It could be difficult for Emami to protect market share of the highly profitable Kesh Kish amid competition from the likes of Hindustan Unilever's Indulekha

The share price of consumer goods player Emami has plunged over 25 per cent in the last one month, outpacing the recent correction in the fast-moving consumer goods (FMCG) space, amidst pricey valuation.

Worries such as fewer new product launches, distribution mix, high input cost, and potential weakness in key markets, have all weighed on the stock, and these perturbations are unlikely to easy soon, say analysts. Thus, even as the current stock valuation of 27.2x the FY20 estimated earnings looks attractive (vis-a-vis peers), the risk-reward is not favourable yet.

With expectations over new launches feeble, it may also reflect on near-term