India's Emami jumps most in seven months after Goldman sees scope for re-rating
BUZZ-India's Emami jumps most in seven months after Goldman sees scope for re-rating ** Emami shares EMAM.NS climb as much as 7.35% to 396.45 rupees, biggest intraday percentage gain in seven months, after Goldman Sachs reiterates "buy" rating
** Brokerage retains 625-rupee PT, implying 69.2% upside
** Goldman expects Emami's domestic subsidiaries to emerge as key growth driver as they scale up across high-growth FMCG categories
** These businesses contribute about 18% of domestic revenue, aim grow at 20%-30% compound annual rate through the financial year 2029, says Goldman
** Brokerage also expects growth in Emami's core business to improve, supported by pricing and a favourable base
** Goldman Sachs says Emami valuation, at about 18 times 12-month forward price-to-earnings, is roughly 50% below peers, creating scope for re-rating
** EMAM down 27% year-to-date, lagging 17.6% fall in FMCG index .NIFTYFMCG, according to exchange data
(Reporting by Bharath Rajeswaran in Bengaluru)
((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))
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