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


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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