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Emami launches ₹282 crore open-market share buyback after stock slump
The consumer-goods maker’s shares have fallen more than 30% in 12 months, and the Nifty FMCG index is down around 20% over the same period.
Emami Ltd announced an open-market share buyback worth ₹282 crore in September, following a difficult year for the consumer-goods maker, according to LiveMint Markets. The company said the buyback was announced last month at ₹475 per share, and Emami shares closed at ₹372.65 on Thursday.
LiveMint Markets reported that Emami’s stock has fallen more than 30% over the past 12 months, while the Nifty FMCG index is down around 20% in the same period. The report said the company is betting on D2C brands and acquisitions to drive growth.
The outlet added that analysts view the sector’s domestic weakness as tied to factors including seasonality, softer consumer pockets in rural India, volatile financial performance, and the shift towards direct-to-consumer brands. It also cited the West Asia conflict as a source of added pressure, hurting supply chains, raising logistics costs, and affecting raw material baskets.
The summary said Emami’s “bigger test” is whether it can turn growth from its portfolio into profits as its core business faces pressure, with the article noting the company has responded with price hikes.