Share Trading Tips

CMP – 594.15

The stock of Emami, the Kolkatabased FMCG company, was on a roll in the past week, touching a 52-week high on March 8,2010. Opening the day at Rs 586.80, the stock closed at Rs 621.30. Over the last fortnight, the stock has gained almost loper cent with a 60 per cent increase in the delivery volumes. The FMCG major has made a recent foray into food products with the launch of six variants of edible oil, under the brand “Healthy & Tasty”, for retail consumers. Emami is trying to tap the unorganised market through low unit packs (LUPs) priced between Rs 50 and Rs 80. Besides edible oils, the company plans to foray into newer food categories like breakfast cereals and milk-based beverages to increase the consumer base by offering differentiated products in the Rs 1,500 crore milk-based beverages market. Though Emami insists that personal care will remain its core business, it wants to cut its teeth in the Indian foods market which is worth an estimated Rs 2,50,000 crore as well as in the value-added food products segment which is worth about Rs 80,000 crore. This is expected to double in a decade.