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Entry Price

67.00

Target

85.00

Recommend Date

22-06-2020

Return

26.87 %
BUY

Date : 22-06-2020

Despite a significant fall in polypropylene prices and thereby realisations, the company managed to post almost flat topline during the quarter, largely on account of better volume growth. Emmbi reported revenue of | 74.7 crore (-1% YoY). Gross margins for the quarter improved 155 bps YoY to 36% due to a change in the product mix, which negated the impact of negative operating leverage to certain extent. EBITDA fell 19% YoY to | 8.57 crore, impacted by higher employee (+25% YoY) and other cost (+16% YoY). OPM remained at 11.5% (-250 bps YoY). Poor operational performance led to a subdued bottomline at | 3.75 crore (-22% YoY).