PTIEmkay Global has given hold rating to Marico with a target price of Rs 350. The share price previously closed at Rs 350.45.
Marico Ltd., incorporated in the year 1988, is a Large Cap company (having a market cap of Rs 47285.66 Crore) operating in FMCG sector.
Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 1925.00 Crore, up 28.68 % from last quarter Sales of Rs 1496.00 Crore and down -11.13 % from last year same quarter Sales of Rs 2166.00 Crore. The Company reported net profit after tax of Rs 390.00 Crore in latest quarter.
Investment Rationale
The brokerage said that the recovery is good, but it awaits more visibility on improvement in growth trends, particularly hair oils, which were muted even in the pre-Covid19 period. It has increase FY21-23 estimates by 3-6% on better margins and cost savings. The stock looks fairly valued at 35x FY22E EPS. It maintains Hold with a revised TP of Rs 350 (Rs320 earlier), after rolling forward to 33x Sept-22E EPS.
Promoter/FII Holdings
Promoters held 59.6 per cent stake in the company as of March 31, 2020, while FIIs held 22.7 per cent, DIIs 10.5 per cent and public and others 7.2 per cent.
Marico Ltd., incorporated in the year 1988, is a Large Cap company (having a market cap of Rs 47285.66 Crore) operating in FMCG sector.
Financials
For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 1925.00 Crore, up 28.68 % from last quarter Sales of Rs 1496.00 Crore and down -11.13 % from last year same quarter Sales of Rs 2166.00 Crore. The Company reported net profit after tax of Rs 390.00 Crore in latest quarter.
Investment Rationale
The brokerage said that the recovery is good, but it awaits more visibility on improvement in growth trends, particularly hair oils, which were muted even in the pre-Covid19 period. It has increase FY21-23 estimates by 3-6% on better margins and cost savings. The stock looks fairly valued at 35x FY22E EPS. It maintains Hold with a revised TP of Rs 350 (Rs320 earlier), after rolling forward to 33x Sept-22E EPS.
Promoter/FII Holdings
Promoters held 59.6 per cent stake in the company as of March 31, 2020, while FIIs held 22.7 per cent, DIIs 10.5 per cent and public and others 7.2 per cent.