Marico Q1 Review - Multiple Growth Drivers In Place: Systematix
Marico Ltd. health and beauty products are displayed on the shelf of a department store in Mumbai, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

Marico Q1 Review - Multiple Growth Drivers In Place: Systematix

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Systematix Research Report

Marico Ltd.’s Q1 FY22 topline was ahead of our estimates while margins were slightly below our estimates.

Domestic revenues grew 35% YoY driven by volume growth of 21% YoY on a favourable base of down 14% YoY.

Gross margin contraction was higher than our estimates due to raw material inflation, resulting in Ebitda margin of 19% (versus our estimate of 19.5%).

We believe Marico is entering its strongest business phase given:

  1. Parachute coconut oil’s market leadership and brand equity is enabling sustainable growth,

  2. value added hair oil is witnessing a revival in growth rates aided by focus on the bottom-of-the-pyramid and higher rural distribution,

  3. Saffola edible oil should continue its strong growth momentum led by an increase in household penetration.

Click on the attachment to read the full report:

Systematix Marico Q1FY22 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

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