| Emami IPO |
| Consumer company Emami has come out with a public offer. The company is offering 50 lakh shares of Rs 2 each for cash and the price band is set at Rs 60-70. With annual sales of Rs 216 crore (FY04), the company offers over 20 products. |
| Its main products Boroplus Anticeptic Cream and Navratna Oil are market leaders in antiseptic cream and cool oil categories respectively. For six months ended September 30, 2004, the company clocked sales of Rs 85 crore and a net profit of Rs 9 crore. |
| Based on annualised earnings for H1FY05, the company is valued at a price-earning ratio of 17.96x to 20.95x, considering the IPO price band. Emami's products belong to the value-for-money range the company may be able to up its sales in a market which is seeing consumers down-trade their FMCG purchases. Yet, compared to valuations of other mid-sized FMCG companies, the stock looks a bit overpriced. |