Comments
Target: ₹86
CMP: ₹66.39
Electronics Mart India Limited is the fourth largest electronic retailer with a diversified product offering (6,000 SKUs across product categories from more than 70 consumer durable and electronics brand) and is strongly placed in the southern region (AP and Telengana).
EMIL has been increasing its market presence and geographic base with cluster-based expansion while its strategically located logistics & warehousing facilities provides swift turnaround.
Its expansions in Delhi/NCR offers strong growth potential (opportunity size of ₹22,000 crore). Management focus remains on premium products and strong product depth with only top brands in various categories. Further its strategy remains clear that no private labels shall be added to avoid discounting and inventory issues while only focussing on retailing top brands as it has strong relationships with top brands in all electronics categories.
EMIL has a consistent track record of revenue growth and profitability. It had the second highest operating margin amongst its peers in Fiscal Year 2021.
Intensified aggression by larger players like Croma, Reliance and Vijay Sales, Muted demand conditions driving downtrading or higher discounting and Brand acceptance issues in the new Delhi/NCR market are key risks.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.