Emami share price rallies over 4% to hit a 52-week high; Emkay Global sees 10% more upside on attractive valuations

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BSE, extending the stellar rally seen over the past one week. Emami shares jumped as much as 4.34% to a fresh high of ₹588.65 apiece on the BSE. In the past one week, Emami shares have risen 16%, which is largely a factor of attractive valuations, analysts said.

Emkay Global Financial Services maintained its positive stance on the stock with a ‘Buy’ rating and a target price of ₹625 per share on 31x P/E, in line with its last 10-year average forward P/E, implying an upside of 10.7% from Friday’s closing price. Also Read: Vodafone Idea share price extends rally, spikes 15% to hit a 52-week high The positive view on the stock is underpinned by its enhanced focus, further to which the company has roped in professionals who are helping it get the right fit for addressing wider consumer needs. The promoter group has been tackling the share pledge issue and, with buybacks, is seeing expansion in shareholding.

“With ~52% of revenue coming from the Rural and high seasonal portfolios, we see that valuation re-rating from its last 10Y average would be a factor of stability in topline growth. High rural revenue focus grants an edge in on-demand recovery for Emami, while seasonality remains the key risk," Emkay Global said. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) The brokerage believes Emami’s management guidance of mid-to-high single-digit growth across segments in India over the medium term looks achievable.