India's Emami jumps after Goldman Sachs projects strong earnings growth recovery

Emami

27/11/2025 06:11

** Consumer goods' maker Emami's shares EMAM.NS rise as much 4.75%, biggest intraday gain in five months, to 538.45 rupees; stock last up 2.5%

** Goldman Sachs assigns "Buy" rating, saying EMAM is trading significantly below sector valuations, despite delivering stable earnings in the last two fiscal years

** Goldman Sachs' price target of 825 rupees implies an upside of 61% over the last close

** Sees strong recovery in EMAM's earnings over the next four quarters

** Estimates 10% year-on-year earnings growth in the second half of fiscal year 2026 on expectations of cooler-than-average temperatures, which is likely to boost EMAM's winter portfolio

** Says the disconnect between growth and valuations is likely to end, triggering a strong earnings recovery

** EMAM shares are down 14.1% in 2025 so far, lagging the 2.3% fall in the fast-moving consumer goods index .NIFTYFMCG, exchange data shows

 (Reporting by Bharath Rajeswaran in Bengaluru)

 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))