
Emami is grooming for a better future, but can growth catch up?
Subscribe to enjoy similar stories. Emami Ltd is tweaking its playbook to stay ahead. It is betting big on urban expansion, cutting back its dependence on general trade and doubling down on modern retail.
Rural demand is stabilizing, but the push is coming from a sharper brand strategy. The stock is down around 34% from its 52-week highs of ₹860 apiece seen in September, reflecting concerns about general discretionary weakness and execution risks. This is despite the fact that Ebitda margin at 32.3% stood at a twelve-quarter high in Q3FY25, thanks to price hikes and cost efficiencies.
Ebitda is short for earnings before interest, taxes, depreciation and amortization. Discretionary segments, comprising Kesh King, Smart and Handsome, and digital brands, remain a weak link with sluggish volume growth. The male grooming segment, including Smart and Handsome and The Man Company, is eyeing a turnaround after a rough patch—sales were down 7% year-on-year in 9MFY25.
Smart and Handsome is banking on category extensions, while The Man Company is cutting back on promotional spending to restore growth from Q4FY25. Kesh King sales fell 12% in 9MFY25 as it continues to battle downtrading. It is undergoing a full-fledged repositioning, backed by a three-year roadmap with Boston Consulting Group.
Trade dynamics are also getting a refresh. “Our on-ground checks suggest a change in the company’s stand with respect to trade stocking, where the focus is to not burden trade ahead of the season but offer incentives over the season rather than pre-loading," said Emkay Global Financial Services. Emami’s core portfolio—Navratna and Dermicool are well-placed to cash in on the summer, while Boroplus saw strong traction in winter.
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