Improving outlook, lower promoter pledge positive for Emami stock

All round performance in Q3, attractive valuations add to the optimism, say analysts

Sustainable volume-led recovery driven by healthy rural demand, focus on expanding distribution reach, new product launches and management’s commitment to reduce promoter pledge has turned analysts bullish on consumer goods firm, Emami. 

In Q3, Emami reported a second successive quarter of double-digit volume growth led by robust traction in the rural market. Emami derives close to 55 per cent of its overall revenues from the rural segment. This is considerably higher than the industry average of 35 to 40 percent according to estimates.
 

Rural areas and small towns have been relatively less impacted because of the Covid-19 pandemic as reflected in