Sharekhan has given Buy recommendation for Marico with a target price of Rs. 610 in its research report issued on Jul 02, 2021
Sharekhan’s research report on Marico
Marico’s India business grew strongly by 30%, while the international business rose 20%, which will lead to a ~26% revenue growth in Q1FY2022 led by a low base of Q1FY21. Though OPM will decline by 387 bps to 20.5% y-o-y on raw material inflation and low ad-spends in base quarter. However, drop in copra prices from peak would help them improve q-o-q. Management is seeing demand improve as the second COVID-19 wave recedes. It stuck to its medium term outlook of double-digit profit growth and an 8-10% rise in domestic volumes.
Stock trades at decent valuation of 41x FY2023E earnings. We maintain a Buy with a revised price target of Rs. 610.