Emami shares climb 5% on 26% stake buy in Axiom Ayurveda
Emami shares climbed 5% to Rs 537.8 in Friday's trade on BSE after the company announced its entry into the health juice category with the acquisition of a 26% stake in Axiom Ayurveda, which markets a range of beverages under the brand name AloFrut.
“We are delighted to announce our partnership with Axiom Ayurveda through a strategic investment in equity.
This marks our entry into the juice category with ‘AloFrut’. With health & wellness being the buzzword for consumers today, we see tremendous potential in the segment," Harsha V Agarwal, vice chairman and managing director of Emami, said in a statement.
The company, however, has not disclosed the deal size.
At 10.08 a.m., the scrip was trading 3.6% higher at Rs 531 on BSE. On a year-to-date, the stock also gained 23%, while it has delivered 47% returns in the past six months.
Axiom Ayurveda has a manufacturing facility in Ambala, Haryana, and is setting up a new state-of-the-art facility in Jammu at a cost Rs 160 crore.
AloFrut has a strong market presence across general trade, government institutions, modern trade, and e-commerce platforms.
In Q1 FY24, Emami reported an 86.5% year-on-year rise in its consolidated net profit to Rs 137.72 crore. The company had reported a profit of Rs 73.83 crore in the year-ago period.
Meanwhile, the company's consolidated revenue from operations rose 6.8% on year to Rs 825.66 crores during the quarter ended June from Rs 773.31 crore in Q1FY23.
As per Trendlyne data, the average target price of the stock is Rs 548, which indicates an upside potential of 3% from the current market prices.
The consensus recommendation from 25 analysts for the stock is a 'Buy'.
In terms of technicals, the stock's day RSI (14) is at 44.5. The RSI
