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.
Nirmal Bang Report
Topline and Ebitda margin were below our estimates by 16.2% and 359 basis points due to lower-than-expected sales and operating de-leverage.
Sales channels such as GT (~41% contribution), E-Commerce (~30%), Modern Trade (~12%), original equipment manufacturer (~9%), Institutional/Corporate (~6%), and Retail (~3%) witnessed strong volume growth. Going forward, focus will be on growing the Retail channel (Company Owned and Company Operated stores – COCO) as it is comparatively a higher margin segment.
The management's strategy is to cater to the mass segment and offer them a branded product at reasonable price points.
We maintain 'Accumulate' with a revised target price of Rs 470, valuing it at 17 times December 25E earning per share.
While we expect backward integration to expand margins, a tepid demand environment, higher operational costs, and elevated capex are expected to keep earnings in check.
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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
