Domestic revenue in Q4 declined 7.6 percent to Rs 1,146 crore and international business degrew by 5.1 percent to Rs 350 crore YoY.
Marico share price gained 5 percent in the early trade on May 5 despite company having posted a weak set of numbers for the quarter ended in March.
The company, on May 4, reported a massive 50.6 percent year-on-year (Y0Y) fall in consolidated profit to Rs 199 crore versus profit of Rs 403 crore.
There was an exceptional loss of Rs 10 crore during the quarter.
Domestic revenue in Q4 declined 7.6 percent to Rs 1,146 crore and international business degrew by 5.1 percent to Rs 350 crore YoY.
Earnings before interest, tax, depreciation and amortisation (EBITDA) declined 4.1 percent year-on-year to Rs 282 crore in the quarter ended March 2020.
Also Read - Marico Q4 profit falls over 50% to Rs 199 crore, but margin expands on lower input costs
Jefferies
Jefferies has maintained buy call with a target at Rs 400 per share, reported CNBC-TV18.
The Q4 was expectedly weak on topline, while margin beat drives a positive earnings surprise.
The current utilisation is at 75 percent signals a gradual stabilization.
The company expects copra price deflation which improves FY21 margin visibility and the stock offers attractive risk-reward & remains one of the top picks.
Jeffries revise up FY21 EPS forecast as it factor in higher margin.
Kotak Institutional Equities
Kotak Institutional Equities has maintained buy rating with a target at Rs 350 per share, reported CNBC-TV18.
The company continue to find the risk-reward balance attractive. The Q4 print was decent in context of COVID-led disruption.
The research house trim the FY21-22 earnings estimates by 2-4 percent.
Credit Suisse
Credit Suisse has maintained neutral call on the stock and kept target at Rs 295 per share, reported CNBC-TV18.
The India business was supported by Saffola, which grew 25 percent.
There was a steep decline in parachute & value-added hair oils. The advertisement spends is likely to be 100 bps lower in FY21.
The overall FY21 EBITDA margin is likely to be flat YoY and cut FY21-22 earnings by 1 percent, said Credit Suisse.
At 09:18 hrs Marico was quoting at Rs 300.60, up Rs 16.20, or 5.70 percent on the BSE.First Anniversary Offer: Subscribe to Moneycontrol PRO’s annual plan for ₹1/- per day for the first year and claim exclusive benefits worth ₹20,000. Coupon code: PRO365
