Emami (HMN IN) – Q1FY27 Result Update – Growth outlook improves with a touch of B2C – HOLD
Published on 04 Aug 2026
Hair and scalp care has done well with 11% growth while skincare and OTC have shown tepid growth. IBD sales have declined by 12% while D2C sales grew 61% YoY. HMN plans to focus on MT/QC and D2C brands while looking for more acquisitions. Near-term outlook remains cautiously optimistic given 1) Healthy demand trends and low base in 2Q/2Q27 2) benefits of price increases and 3) rising share of higher growth D2C brands. We estimate PAT to decline in FY27 due to normalized tax rate and grow by 13% in FY28. We value the stock at 20x June’28 EPS with a target price of Rs443 (Rs469 earlier). Retain Hold.
