Emami In Focus: Highest Exposure To Rural Sector In FMCG Basket, Banking On Rural Revival? | ET Now

Let's move on and talk about FM series talk, let's talk about Emami. Now Emami, we've seen that yesterday the stock was running up in trade. But before that, when you look at it, it's not much of A outperformance versus other FMCG players in the past that we've seen from Emami. But what's interesting for Emami, what could workout well in terms of a trigger, the rural exposure, look at it, it's the highest amongst the FMCG players, 5550 to 55% of their revenue comes in from the rural exposure. Now the government is expected to focus more in terms of the rural story. You know in terms of the growth story that will come in and there previously it was more CapEx focus, now this time they are going to be focusing on rural consumption, good monsoon. So that leads to a rural recovery. So their volumes will improve and that would be better volume growth, stronger volume growth, aiding the overall growth of the company. Other than that, the other point that works out, you know a possibility of his is that Emamis FII holdings that is you know amongst the lowest, one of the lowest when you look at it in terms of the FMCG side in the FIA holding spot, look at it is at around 13 percent, 13.5% is what I would specify versus HOL which is at one 2.6%. So yes, you know it is amongst the lowest in terms of the FII holdings. And the buzz is that you know there is an increase coming in for the FII holdings FIR increasing their stake in Emami. So that will be very interesting and let us not. Forget why? Because Emami has the cheapest valuations right now. Among the cheapest valuations. You know when you see a pureplay FMCG barring IGC. I'm talking about the other names, Maricodabur, HOL, Nestle. Emami surely trading at a cheap valuation. 33 * 1 year forward at 526. PS What I'm looking at right now. So yes, a lot of positive triggers will come out for Emami in terms of story to play out and the cheap valuations is something that could possibly support the run up for MRV. If you like this video then like, share and subscribe to ET Now.