Published on 24/11/2020 10:09:50 AM | Source: Religare Broking Ltd

Buy Marico Ltd For Target Rs. 405 - Religare Broking

Posted in Broking Firm Views - Short Term Report| #Marico Ltd #Consumer Goods Sector #Trading Report #Religare Broking Ltd

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Investment Pick - Marico Ltd.

* Marico reported decent numbers for Q2FY21, its revenue grew by 8.7% YoY to Rs 1,989cr largely driven by domestic volume of 11% and constant currency growth of 7% in international business. On operational front, EBITDA grew by 10.2% YoY to Rs 389cr while margin was marginally up by 26bps as raw material price were higher which restricted the growth. However cost saving measures and optimisation of advertisement spends aided support. PAT growth was restricted to 7.9% YoY at Rs 273cr as the company reported exceptional item to the tune of Rs 33cr.

* After a muted performance in Q1FY21, Marico’s performance in Q2FY21 witnesses a steady improvement. We believe Marico’s medium to long-term growth prospects will be driven by investment behind its core brands, renovating products in mid-segment, focus on growing and gaining market share in premium category, cost saving initiatives, growing in e-commerce space and as well improving distribution reach. Thus maintaining positive view we have assign a Hold on the stock with a target price of Rs 405.

Buy Marico Ltd @ 9-12 Months CMP 378.25 TGT 405


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