The 21 reports from 8 analysts offering long term price targets
for Marico Ltd. have an average target of 406.13. The consensus estimate
represents an upside of 20.14%
from the last price of 338.05.
global beauty and wellness space. Marico has extensive portfolio spanning hair care, skin care, edible oils, health foods, male grooming, and fabric care. Marico enjoys leadership position in 90% of its portfolio. As of FY18, International business accounted 22% of revenue. Domestic sales accounts for 78% of sales with Parachute rigid packs contributing 36% of sales, VAHO 26%...
We value Marico based on P/E of 35x Dec-20 with TP of Rs 394. Maintain BUY. Marico delivered a mixed bag with beat in revenue growth and miss on gross margins. Net revenues grew by 15% (exp of 13%) with volume growth of 6% (exp. 6%). The co. benefited from softening of copra prices (-23% YoY, -12% QoQ) but wasnt able to expand GM owing to volatile prices of other commodities. Maricos GM pressure was the least in 3Q vs. HUL, Dabur and Emami. EBITDA/APAT grew by 16/12% (exp 23/20%)
ICICI Securities Ltd | Retail Equity Research India business volumes witnessed muted growth of 5% YoY largely due to weakness in Saffola, non-core coconut oil and low end VAHO portfolio. Value growth of 12.8% for Q3FY19 was driven by price hike taken in Parachute portfolio to counter surge in copra prices over the last year. Parachute, VAHO and Saffola witnessed YoY volume growth of 9%, 7% and 2%, respectively While copra prices have corrected more than 23% YoY, inflation in...
Domestic revenue increased ~13% YoY, with 5% volume growth. EBITDA grew 15.8% YoY to INR3.5b (in-line). Adj. PAT increased 12.7% YoY to INR2.5b (in-line). However, EBITDA margin expenses (-20bp YoY to 8.8% of sales) and other expenditure (-50bp YoY to 12.2%), partly offset by higher staff costs (+20bp YoY to 6.5%).
We downgrade our rating from BUY to Accumulate given 1) 28% jump in stock price since our upgrade and 2) rising probability that Copra price decline in the current down cycle will be far lower than previous occasions....
Overall demand environment was good in 3QFY19 with market share gains across key portfolios. The positive sentiment during the quarter was led by festive season and expectations of a stimulus from Government initiatives.
Over the past few years, one of the disappointments investors harbored for Marico was regarding the subdued performance of its new launches. Except for Saffola Masala oats (launched over six years ago) none of the new launches have contributed significantly to the sales growth. However, over the past 18 months, Marico has pulled up its socks and now has a strong product pipeline with a few initial successes. We recently met Marico's management to understand reasons for the new improved pipeline and to gauge the company???s growth targets, going forward
Stock price run-up by 14% in one month; Margins to enhance in the coming quarters on account of receding copra prices: The stock price of Marico has moved up by ~14% in the past one month due to positive commentary by management on demand environment and margin improvement due to declining copra prices. Despite the recent run-up, the stock is...
We value Marico based on P/E of 35x Sep-20 with TP of Rs 380. Maintain BUY. Marico reported a commendable quarter with a beat in revenue and EBITDA growth. Net revenues grew by 20% YoY to Rs 18.4bn (exp. 12%). Volume growth of 6% (exp. 6%) is healthy given steep price hike and disruptions in CSD channel (7% vol. ex-CSD). Gross margin pressure decelerated in-line with our expectations.
ICICI Securities Ltd | Retail Equity Research India business volumes witnessed tepid growth of 6% YoY largely due to a significant decline in canteen stores department (CSD) sales. Volume growth ex-CSD was 7%. Value growth of 19.6% for Q2FY19 was driven by 25% price hike taken in Parachute portfolio to counter input cost inflation. Parachute, VAHO and Saffola witnessed YoY volume growth of 8%, 5% and 5%, respectively While copra prices corrected by more than 11% YoY, consumption...
We upgrade our rating to BUY given 16% correction in stock price and input Change in Estimates | Target | Reco 1) 34% decline in copra prices from the peak as cycle has reversed 2) growing...
Q1FY19 revenue growth driven by strong domestic growth of 23% with volume growth of 12% on low comparables. EBITDA margins dipped 180bps YoY on higher input costs. EBITDA grew 9%YoY supported by lower ad expenses (-157bps YoY) and other expenses....
Marico has delivered strong quarterly performance in the backdrop of the extremely challenging input cost environment, with healthy volume growth across key segments including Parachute Rigids (+9% YoY), Value Added Hair Oils (VAHO) (+15% YoY) and Saffola (+15% YoY). YoY comparison is not possible as Q1FY18 was a pre-GST quarter. The company continue to face Gross margin pressure due to steep increase in copra prices, which Marico countered with price hikes in the Coconut Oil portfolio. While near-term earnings shall continue to face pressure on weaker margins (higher copra...
ICICI Securities Ltd | Retail Equity Research Consolidated sales for the quarter grew by 20.5% YoY to | 2026.8 crore (above our estimate of | 1855.2 crore) led by 12.4% increase in India business volumes in addition to ~25% price hike taken by the company in parachute portfolio. India business reported a growth of 22.6% YoY and the international business grew by 12.8% YoY....
We value Marico based on P/E of 35x Jun-20, and arrive at a TP of Rs 388 (earlier Rs 388). Maintain BUY. Marico reported an in-line quarter, marked with the end of margin pressure in this copra cycle. Net revenues grew by 20% YoY to Rs 20.3bn (exp. 17%). We anticipated margin pressure owing to copra inflation, partially offset by rationalization of ASP and other expenses. EBITDA/PAT grew by 9/10% (exp. 6/8%).
We maintain our Hold rating on Marico Ltd with an upward revised target price of Rs 342 (earlier Rs 333). During FY18, Marico registered revenue growth of 7% YoY with volume growth of 1.3%. Rural growth continued to outpace urban growth. Adjusted PAT rose 7% YoY. Persistent inflation in copra prices (up 75%) during the year continued to dent margins. EBITDA was down 1.8% in FY18 with a margin contraction of 170bps to 18%. In FY18, Marico undertook aggregated price hike of 22% in Parachute. Management expects copra prices to remain firm in H1FY19 and expects operating margin to be in the range of 17-18% over the medium term. Better monsoon, benefits of GST implementation, recovery in CSD channel, changing macros are expected...
We value Marico based on P/E of 35x Mar-20, and arrive at a TP of Rs 376. Maintain BUY. Maricos revenues grew by 13% YoY to Rs 14.8bn (in-line). EBITDA margin dip was more than expected due to higher gross margin pressure. EBITDA/PAT increased by (2)/4% vs. expectation of 4/10% respectively.
