Emami – FMCG Available at Low Valuation

For Emami, the issue I observed regarding growth is with their domestic business like Boroplus, Zandu balm, oils, etc… these are already well-penetrated in their respective categories. Management points out they are yet to fully penetrate but IMO they can’t grow better than category growth.
– Few mistakes, I observed here are they are late in extending the brands to other categories(Focused only on one sub-category).
– Even though they are market leaders, their volumes are coming from low-priced SKUs because their core market is rural and D2C brands and other brands are pulling some volumes away(Especially in oil categories).
I observed management realizing this mistake and expanding into other categories. Also, they are focusing on Healthcare(Checkout Zanducare platform) and international business to drive growth plus premiumization in these segments. Let’s see how it goes.

I agree valuation is low for an FMCG company and saw an uptick in volumes at 345 and 370 price points. I also think the downside is limited.