Marico Q1 Results Review - Margins Inline With Estimate; Maintain Accumulate: Dolat Capital

Dolat Capital Report

Marico Ltd.'s revenue and Ebitda were in line, while adjusted profit after tax was ahead of our estimate. The company reported 6.7% YoY revenue growth. India business reported 7.0% growth with 4% volume increase.

Although Parachute Rigids volume offtake during Q1 was at 8%, the reported volume grew by a mere 2% (2% volume de-growth in the base quarter) due to stock adjustments in GT channel. The company has taken price hikes in Parachute portfolio which is likely to help accelerate growth in ensuing quarters.

As Q1 profitability was ahead of our estimate, we have upward revised our FY25/26E EPS by 1.4/1.4% at Rs 12.9/14.1. Going ahead, we believe that profitability will remain high with improving business conditions and moderate inflation.

Valuing the stock at 52 times FY26E earnings per share (in line with Dabur), we have increased target price at Rs 737. Maintain ‘Accumulate’ rating.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit 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 NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.