Japanese brokerage firm Nomura has downgraded FMCG major Emami citing high valuations.
According to Eikon data, the company has traded at 42 times of 1 year forward earnings as compared to 32.4 times of rivals.
The brokerage company prefers Dabur India, Godrej Consumer and Hindustan Unilever which offer higher growth at cheaper multiples.
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The Eikon data said that the company’s stock has 13 ‘buy’, 8 ‘hold’ and 5 ‘sell’ ratings.
At 9.59 am, Emami shares were trading 0.33 per cent up at Rs 1099.55. Sensex was down 91.35 points at 25,772 during the same time.
The stocks of Emami from January 2015 till date has been up 39.3 per cent, whereas the NSE Nifty has declined 5 per cent during the same period.
With Reuters inputs
