Marico Q1 Results Review - Operationally Inline; Growth Acceleration To Sustain: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Marico Ltd. reported consolidated revenue growth of 7% YoY (in line) in Q1 FY25. Domestic revenue growth was 7% YoY with volume growth of 4% (3% in Q4 FY24). International growth stood at 5% YoY (10% constant currency growth). Parachute coconut oil posted 6%/2% YoY growth in value/volume. Volume growth was partially affected by stock adjustments in GT. Volume offtakes grew by 8%. PCNO gained 100 basis points market share. Value added hair oil revenue was down 5% YoY, affected by persistent weakness in the mass segment. Saffola oil clocked mid-single digit volume growth, but revenue marginally declined 1% due to price cuts. Foods sustained strong growth of 37% YoY.The premium and urban-centric segments outperformed the rural and mass segments. Rural demand is gradually improving, while urban markets remained stable. The management is optimistic about a growth revival in FY25 and expects double-digit revenue growth, led by volume.Gross margin hit a 28-quarter high of 52.3%, driven by softer input costs. Ebitda margin expanded 50 bp YoY to 23.7%. Ebitda grew 9% (estimate 10%). We reiterate our Buy rating on the stock with a target price of Rs 750 (50 times June-26E EPS). We believe that Marico is a good play on volume recovery..Click on the attachment to read the full report:.DISCLAIMERThis 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.

Marico Q1 Results Review - Operationally Inline; Growth Acceleration To Sustain: Motilal Oswal

Although it has rallied 35% in the last three months, the brokerage continues to believe that rich valuation will sustain given earnings acceleration.

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Marico Q1 Results Review - Operationally Inline; Growth Acceleration To Sustain: Motilal Oswal

Although it has rallied 35% in the last three months, the brokerage continues to believe that rich valuation will sustain given earnings acceleration.

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