Emami – FMCG Available at Low Valuation

My 2cents:

1. Past Sales growth is a bummer but in the last few years there was a lot going on in the company:
   – Limited promoter focus(focusing on other companies in the group)
   – Trying to go deep into existing categories rather than the width(Recognized late)
   – Macro headwinds(From 2017 they faced issue after issue)
   – And shifting of strategy to direct retail etc…
2. I disagree with unrelated businesses because they are focusing only on niche areas where there is limited competition and developing brands in that area rather than directly going head-on-head with Big FMCG companies that is one of the reasons for high EBITA margins.
3. True high pledge by promoters but in the last investor call they mentioned the hospital deal is sealed but waiting on permission from govt. If this happens pledge will be reduced a lot.
4. Interesting thing to note is continuous Buybacks.