Goldman Sachs’ Bullish Outlook Pushes Emami Up 5%, With Up to 60% Upside Expected

Emami Shares Jump as Goldman Sachs Predicts Strong Upside and Earnings Recovery

Emami shares climbed nearly 5 percent on November 27 after global brokerage Goldman Sachs delivered a bullish outlook on the company’s prospects, forecasting up to 60% upside potential. The Emami share price rose to ₹538.45—its highest level in 14 trading sessions—marking the stock’s second straight day of gains.

The rally follows renewed optimism in the FMCG sector, with analysts anticipating a strong earnings recovery for Emami driven by improved demand, seasonal tailwinds, and operational efficiency.

Also Read : SEBI Explores Margin Reduction in Cash Market; Proposal Taken Up by Key Panel

Goldman Sachs Projects 60% Upside for Emami Shares

In its latest report, Goldman Sachs retained its ‘Buy’ rating on Emami and set a target price of ₹825 per share, implying an impressive 60.5% upside from the prior close of ₹514.05.

According to the brokerage, Emami is positioned to deliver a strong earnings rebound over the next four quarters, supported by:

• A stable demand ecosystem

• Seasonal boost for its winter-centric product portfolio

• Normalization of earnings volatility

• Improving visibility on growth trajectory

The note pointed out that Emami’s valuations currently appear disconnected from its earnings potential, largely due to short-term volatility masking the company’s underlying growth momentum.

Goldman Sachs also expects 10% YoY earnings growth in H2 FY26, partly driven by cooler-than-average weather that could significantly benefit Emami’s winter-focused brands.

Brokerage Flags Key Risks Despite Optimism

Even as it issued an upbeat projection, Goldman Sachs highlighted four downside risks that could affect Emami’s performance:

• Overexposure to niche yet dominant categories

• Possible management-level transitions

• Rising competitive intensity within key product segments

• Adverse climatic conditions impacting seasonal demand

Despite these concerns, analysts believe Emami’s risk-reward profile remains attractive, with strong brand equity and a diversified product portfolio providing significant support.

Elara Capital Also Turns Bullish on Emami Shares

Earlier this month, domestic brokerage Elara Capital upgraded Emami to ‘Buy’ from ‘Accumulate’ and assigned a ₹700 target price, signalling more than 36% potential upside.

Elara noted that Emami’s weak Q2 performance stemmed from GST-related trade disruptions and an unusually extended monsoon, which impacted seasonal categories. However, its analysis shows improving momentum from Q3 onward due to:

• Recovery in winter-driven demand

• Strong rural traction

• Portfolio relaunches

• Better distributor loading

The brokerage expects margins to improve in H2 FY26 as volumes normalize and operating leverage strengthens.

Emami Q2 Results: Short-Term Pressures Weigh on Performance

The dip was attributed to:

• Weather irregularities impacting seasonal sales

• Trade disruptions due to GST updates

• Sluggish demand across select regions

However, analysts believe the downturn is temporary, with the company poised for a sharp rebound in the second half of FY26.

Market Outlook: Emami Shares Regain Investor Confidence

The combined positive views from Goldman Sachs and Elara Capital have boosted sentiment around Emami shares, making the stock a notable outperformer in the FMCG sector. Analysts expect the recovery in winter-related categories, strong brand recall, and deeper rural presence to drive sustained momentum.

With a potential 60% upside projected by Goldman Sachs and improving fundamentals ahead of the winter season, Emami is expected to remain on investor radar. The upcoming Q3 numbers and management commentary will be crucial in confirming the pace of recovery and path toward margin expansion.

• Nifty 50
• Bank Nifty
• Sensex