Marico Ltd., incorporated in the year 1988, is a Large Cap company (having a market cap of Rs 70529.22 Crore) operating in FMCG sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 2552.00 Crore, up 25.04 % from last quarter Total Income of Rs 2041.00 Crore and up 31.28 % from last year same quarter Total Income of Rs 1944.00 Crore. Company reported net profit after tax of Rs 365.00 Crore in latest quarter.
Investment Rationale
Sustained topline momentum, with improving margin prospects over the trough seen in 1QFY22, has led to a 1.9%/4.4% increase in FY22E/FY23E EPS.a) Ongoing topline growth momentum in each of its core segments, b) significantly higher growth rates as well as targets in the Foods portfolio, and c) INR4.5-5b now targeted from its ‘Digital-first’ range of products are highly encouraging developments for a business that had only ~6% sales CAGR over FY15-20, before reporting double-digit growth in FY21.
The much required diversification could lead to higher multiples compared to the past. Valuations at 46.2x FY23E EPS appear inexpensive, given the promise of strong earnings growth compared to the past. The brokerage targets 50x Sep’23E EPS to arrive at TP of INR635/share, implying a 16% upside.
Promoter/FII Holdings
Promoters held 59.6 per cent stake in the company as of June 30, 2021, while FIIs held 25.1 per cent, DIIs 9.7 per cent and public and other 5.7 per cent.
(Disclaimer: Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.
