Marico Ltd., incorporated in the year 1988, is a Large Cap company (having a market cap of Rs 67130.83 Crore) operating in FMCG sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 2041.00 Crore, down -4.89 % from last quarter Total Income of Rs 2146.00 Crore and up 33.57 % from last year same quarter Total Income of Rs 1528.00 Crore. Company reported net profit after tax of Rs 227.00 Crore in latest quarter.
Investment Rationale
MRCO’s resilient product portfolio has delivered an impressive performance across categories, with the domestic business registering strong double-digit volume growth, even as most of 1QFY22 was disrupted by COVID-led lockdowns. Growth in Parachute is highly encouraging. The Foods and Edible Oils portfolio is likely to continue its growth momentum, with a higher consumer focus on health, hygiene, and immunity boosting products. Riding this tailwind, it is launching new products in these categories, the success of which will be critical for medium-term growth (though it has seen limited success so far). Continued rebound in VAHO is a positive, and further commentary needs to be watched out for. Outlook on its international business is getting better. Material costs are beginning to stabilize post the sharp inflation seen at the beginning of 1QFY22. This will help bolster gross margin. At 45.8x FY23E EPS, the stock trades at a premium to historical valuations, but better earnings visibility v/s peers over FY22 will result in sustained premium multiples.
Promoter/FII Holdings
Promoters held 59.6 per cent stake in the company as of June 30, 2020, while FIIs held 24.1 per cent, DIIs 10.2 per cent and public and others 6 per cent.
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