Emami (HMN IN) – Q4FY26 Result Update – Banking on acquisitions to power growth – Downgrade to ‘HOLD’
Published on 21 May 2026
HMN reported a decline of ~3.9%/7% in sales/volumes on weak summer and unseasonal rains during the quarter. Near-term outlook remains cautiously optimistic given 1) Healthy demand for FY27 and 2) Acquisition of new brands in Beverage and BPC segments. While summer demand has picked up in April/May, IBD remains a near term concern. Emami’s new acquisitions of Axiom and Incnut will provide flip to sales, however organic growth in these brands needs to watch out for. We estimate a sales/EBIDTA/EPS CAGR of 10.8/10/5.5% over FY26–28. We value the stock at 24x March’28 EPS, assigning target price of Rs469 (Rs484 earlier). Cut to Hold.
