McLeod Russel (India) Ltd. share price target

On the other hand, though domestic tea production has been increasing well, the increase in consumption is slow. This does not augur well for the industry. This unhealthy demand-supply situation is one of the primary reasons for falling prices in auctions. Tea production in India has grown at ~3% CAGR in last five years whereas consumption has increased at only a CAGR of 2%. We believe McLeod's continued deterioration in earnings in the backdrop of rising production costs along with high debt exposure is structural in nature. Hence, we are dropping coverage on the company....

McLeod Russel's sales was flat for the quarter at | 377.9 crore (I-direct estimate | 391.4 crore) On an annual basis, consolidated revenues increased 9.9% to | 2,055.3 crore, driven by a 5.8% increase in both volume & prices to 901 lakh kg and | 173/kg, respectively EBITDA loss increased 25.2% during the quarter owing to higher other expenses, which increased 36.6% YoY. EBITDA loss for the quarter came in at | 267.9 crore against | 213.9 crore in Q4FY18....

McLeod russel posted a strong set of numbers with the 28.6% sales growth to | 556.4 crore (I-direct estimate |436.9 crore) led by 19% volume growth and 6.8% realization growth. The strong...

McLeod Russel reported revenue in-line with our estimates, however, it was a miss on operating margin and profit fronts. Sales for the quarter was flat on YoY basis to | 468.6 crore, broadly in-line with our estimates at | 473.5 crore. Due to unfavourable weather conditions and thus, loss of production in Kenya aided the tea realisation in both domestic and international markets. Blended realisation for the quarter grew by 3.9% to | 180.6/kg. Volume grew by 2.4% YoY 256 lakh kg; domestic volume...

ICICI Securities Ltd | Retail Equity Research McLeod Russel was able to restrict its losses for the quarter on account of higher production and sales volume. Revenue for the quarter grew 8.1% YoY to | 193.4 crore (I-direct estimate | 167.7 crore) primarily on account of 11% growth in volumes to 11.1 lakh kg However, the blended price continued to remained under pressure and declined 1.6% YoY to | 168.4/kg. Domestic prices continued to remain under pressure and were largely flat YoY. Conversely, prices...

ICICI Securities Ltd | Retail Equity Research Sales for the quarter were up 13.2% YoY to | 353.6 crore (I-direct estimate: | 326.7 crore) mainly on account of higher volumes to 288 lakh kg, mainly in the domestic market. However, the price remained under pressure and declined 12.4% YoY to | 122.8/kg EBITDA loss for the quarter remained flat for the quarter despite growth in sales owing to higher raw material cost, which grew 46.2% YoY. Loss for the quarter came in at | 107.8 crore against | 117.8...

ICICI Securities Ltd | Retail Equity Research McLeod Russel India (MRIL) reported 13.8% YoY decline in sales for the quarter to | 432.6 crore (I-direct estimate: | 489.4 crore). Pressure on both demand and price in export as well as the domestic market continued for the quarter due to the excessive production in Kenya. Tea price per kg declined by 10% YoY to | 170.3 and the volume declined by 4.2% YoY to 214 lakh kg Decline in sales and substantial increase in employee cost (up ~10pp...

ICICI Securities Ltd | Retail Equity Research McLeod Russel India (MRIL) reported a disappointing set of numbers for Q2FY17 on all fronts. Net sales declined 13.3% YoY to | 435.5 crore (I-direct estimate: | 507.1 crore). This was led by pressure on both demand and price in export as well as the domestic market. Tea...

McLeod Russel India (MRIL) reported a disappointing set of Q1FY17 numbers on all fronts. Net sales grew 2.8% YoY to | 171.3 crore (Idirect estimate: | 179.2 crore). There was a marginal YoY recovery in tea volumes to 10 million kg (mkg) in Q1FY17 from 9.8 mkg in Q1FY16. Selling price remained flattish at | 171/kg for the quarter • The company posted a loss of | 15.6 crore at the EBITDA level primarily due to an increase in tea workers’ wages (employee cost up 16.7% YoY) in the absence of concomitant increase in tea prices. This, along with 26% YoY increase in interest cost to | 23.6 crore led to net loss of | 17.3 crore (I-direct estimate: | 20.2 crore profit). ICICI Securities Limited value the company at 12x FY18E EPS of | 13.4 and arrive at a target price of | 166/share with a HOLD recommendation.

ICICI Securities Ltd | Retail Equity Research McLeod Russel India (MRIL) reported a disappointing set of Q4FY16 numbers on all fronts. Net sales reported growth of mere 1.5% YoY...