Sharekhan is bullish on Marico has recommended buy rating on the stock with a target price of Rs 420 in its research report dated July 27, 2020.


Sharekhan’s research report on Marico

Marico’s Q1FY2021 performance was better than our as well street expectations, largely led by ~300 bps expansion in consolidated OPM, resulting in 4% growth in adjusted PAT to Rs. 340.8 crore (better our expectation of Rs. 283.4 crore). Domestic sales volume decreased by ~14%, led by 11% volume decrease in parachute rigid packs and 30% volume decline in value-added hair oil (VAHO) portfolio. Saffola edible oil registered 16% volume growth. The month of June saw recovery in sales of Parachute rigid pack and VAHO portfolio, Saffola edible oil is expected to maintain the good run, while margin expansion is expected to sustain due to benign input prices and lower ad spends.


Outlook

We have revised upwards our earnings estimates by ~6% and ~4% for FY2021 and FY2022, respectively. We maintain our Buy recommendation on the stock with a revised price target of Rs. 420.


For all recommendations report, click here

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First Published on Jul 30, 2020 03:26 pm

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