"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.
Motilal Oswal's research report on Emami
Emami’s consolidated sales growth of 5.4% YoY (flat volume growth) was broadly in line with our expectation. However, higher-than-anticipated material costs and 10% absolute increase in ad-spends YoY (at a time when peers have been reducing the same to offset material cost-led pressures) resulted in an 18% miss on EBITDA for 4QFY22. It is heartening, though, that Emami is investing on growth. On a full-year basis, its ad-spends-to-sales ratio expanded 50bp YoY and its investments on Project Khoj (to augment rural distribution) also continued.
Outlook
While sales growth continued to be unimpressive for a company of its size (with a five-/three-/two-year CAGR of 5.1%/5.8%/9.7%, respectively), the trend is getting relatively better. Maintain BUY with a TP of INR510.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Read More