Emami (HMN IN) – Q2FY26 Result Update – GST impact factored in, winter onset near term positive – Accumulate
Published on 10 Nov 2025
HMN saw ~10.3%/16% decline in sales/volumes as GST transition, deferred winer loading and consumer purchase impacted sales by ~10.5%. Near-term outlook remains optimistic given 1) Healthy demand outlook for Q3/Q4 led by strong onset to winters 2) Repositioning of Smart & Handsome with entry in new male grooming segments 3) Revamp and relaunch of Kesh King, with a new proposition, packaging and formulation. Although the summer portfolio may continue to face headwinds in 3Q also, it will be partially neutralized by gains in winter portfolio led by early winters. We estimate a 8.5% Sales CAGR and 7.5% EPS CAGR over FY27–FY28. We value the stock at 27x Sep’27 EPS, arriving at a target price of ₹608 (Unchanged). Strong rebound in 3Q sales can provide upside from current levels. Maintain Accumulate.
