Marico Q1 Review - Rich Valuations Warrants Caution: Prabhudas Lilladher

Marico Ltd. logo (Source: Company PR)

Marico Q1 Review - Rich Valuations Warrants Caution: Prabhudas Lilladher

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Prabhudas Lilladher Report

We are increasing FY22/23 earnings per share by 7.2%/3.8% on the back of high sequential growth in margins as input cost inflation has peaked out.

We believe Marico Ltd.'s outlook remains positive going forward given:

  1. strategy to push volumes working in high inflationary environment in parachute and value added hair oil,

  2. improved competitive positioning of Saffola ,

  3. foods on track to achieve Rs 5 billion revenue in FY22 and Rs 8.5 billion by FY23,

  4. go-to-markets expansion through chemist channel in urban and direct reach in rural by 25% increase in stockists in next two years, and

  5. focus on digital brands to provide Rs 4.5-5 billion topline by FY24.

Marico's near term pressure to sustain as surge in Covid-19 cases in Bangladesh and Vietnam to impact international business revenues.

Click on the attachment to read the full report:

Prabhudas Lilladher Marico Q1FY22 Result Update.pdf

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