Motilal Oswal is bullish on Marico has recommended buy rating on the stock with a target price of Rs 385 in its research report dated June 23, 2020.
Motilal Oswal 's research report on Marico
With the COVID-19 crisis having impacted nearly every industry, we were interested in learning about the strategies being adopted by large corporates to cope with the changing times. Therefore, we interacted with the management of Marico (MRCO) in this regard, as well as to obtain a longer term perspective on the company’s prospects.
Outlook
While the longer term growth trajectory and eventual rerating would be determined by the success of its new products (an area in which it has seen limited success thus far), valuations at 35.5x FY22 EPS (close to 10 year average of 35.6) appear comfortable for a business that has better earnings visibility over peers. We maintain Buy rating with TP of INR385 (40x June’22 EPS).
For all recommendations report, click here
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