Since August 2018, the stock underperforming the market by falling 32% as the company’s April-June quarter (Q1FY19) results missed analyst expectations. The company reported 14% year on year (YoY) in revenue to a little over Rs 6.1 billion, lower than the consensus estimate of Rs 6.3 billion. Overall volume growth at 16% was less than analyst expectations of more than 20%, given the low base of the year-before quarter.
The brokerage firm Prabhudas Lilladher expects Emami to report 3.2% decline in net profit and 4.5% rise in sales for the quarter ended September 2018 (Q2FY19) over the previous year quarter.
“We estimate 3% volume growth on high base and muted season. Kesh King recovery is on track post successful re-launch in 2Q. Watch out for price increases as input costs inflation in LLP, mentha oil and packaging continue. Mentha prices has seen a sharp increase of 55% from the bottom and would impact raw material costs of Emami,” the brokerage firm said in quarterly preview.