Marico Q1 Review - In-Line Result; Gross Margin Likely To Have Troughed: Motilal Oswal
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Motilal Oswal Report
Marico Ltd.’s Q1 FY22 result was in line with our expectations. Sales momentum continues to remain healthy.
With copra prices sharply declining from their peak in recent months, coupled with price increases taken, the management said gross margin is likely to revive in Q2 before increasing significantly in H2 FY22.
It maintained its strong growth guidance for the foods business, with sales targeted at Rs 5 billion by the end of FY22 and Rs 8.5-10 billion by FY24.
Honey, noodles, and soya chunks are doing very well.
Allied with sales of Rs 5 billion now targeted from e-commerce focused brands by FY24, there is a much required diversification of the portfolio, boosting Marico's medium-to-long term topline growth prospects.
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