Emami shares up 5%; brokerages turn bullish on FY26 outlook: Check details

Domestic brokerage Nuvama Institutional Equities expects the FMCG major Emami to witness a double-digit revenue growth in H2FY26

Emami share price today: Shares of FMCG major Emami Limited surged nearly 5 per cent to hit an intra-day high of ₹538.45 against the previous session's close of ₹514.05 on the NSE. At 01:10 PM, the stock was trading 2.91 per cent higher at ₹529 per share. In comparison, the benchmark NSE Nifty50 index was up 44.55 points or 0.17 per cent at 26,249.85 levels.

 

The market capitalisation of the company was at ₹23,082 crore. The stock's 52-week high was at ₹692.95 and 52-week low was at ₹498.45. 

Here's what brokerages say on Emami

Domestic brokerage Nuvama Institutional Equities expects the FMCG major Emami to witness a double-digit revenue growth in the second half of fiscal 2026 (H2FY26) as the GST transition issues are behind with grammage tweaks on packs less than ₹20 and price cuts on the rest, aiding inventory normalisation. Additionally, the company's international business, 18 per cent of sales, is also expected to grow in double digits. Emami aims to scale up D2C sales to 20 per cent of sales from 6 per cent over the next three to four years. 

 

 

According to the brokerage, after a weak H1FY26 marked by a soft summer, Emami is expected to see strong momentum in H2FY26 driven by a harsher winter (La Niña), GST-led benefits, and continued traction in MT (Modern Trade) channels. The brokerage has retained its ‘Buy’ rating with an unchanged target price of ₹795, noting that Emami is trading at 29x/28x/24x FY25A/26E/27E PE. 

The company's core portfolio, which accounts for 70 per cent of the business, is likely to expand at a CAGR of 5 per cent to 7 per cent. "Over coming years, management is aiming for double-digit growth, highlighting the need for inorganic expansion through acquisitions to fulfil this ambition," the brokerage said in its note.

 

Reportedly, international brokerage Goldman Sachs has also maintained its 'Buy' rating on the stock with a target price of ₹825 per share. The target price implies a 61 per cent upside from the previous session's close. 

 

As per Goldman Sachs, the company's valuations do not fully reflect its growth potential, with earnings volatility overshadowing an otherwise healthy growth outlook and weighing on the stock’s valuation. It expects a sharp rebound in Emami's earnings over the next four quarters, on the back of improved demand, better execution, and normalisation in key categories. 

 

However, the brokerage also cautioned that a few factors could pose downside risks. These include Emami’s high dependence on niche categories, the possibility of unexpected leadership changes, rising competition within its core segments, and unfavourable weather patterns.  (Disclaimer: Target price and stock outlook has been suggested by Nuvama Institutional Equities and Goldman Sachs. Views expressed are their own.)