Moneycontrol
Oct 31, 2017 11:44 AM IST | Source: Moneycontrol.com

Buy Marico, target Rs 350; strong competitive positioning a key positive: Citi

The company has approved the first interim dividend for FY 2017-18 at Rs 1.75 per equity share (175 percent) on the paid-up equity share capital.

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Marico has reported an in-line net profit for September quarter at Rs 185.04 crore. The company’s revenue was higher by around 7 percent at Rs 1,536.3 crore against Rs 1.439.5 year on year.

At the operating level, the profits came in at Rs 259.1 crore, while the margin was reported at 16.9 percent.

The company has approved the first interim dividend for FY 2017-18 at Rs 1.75 per equity share (175 percent) on the paid-up equity share capital.

Morgan Stanley has maintain underweight rating on Marico with price target of Rs 270.

According to the firm, the earnings during the previous quarter remained in-line and expect only 8 percent earnings growth in the current financial year.

Management expects volume growth of 8-10 percent in the second half of current financial year for domestic business, it added.

Citi has maintained buy rating on the stock with price target of Rs 360.

The brokerage house expect better trends in the second half of current financial year, partially aided by the weak base of the present quarter (demonetisation) and stable margins. Meanwhile, margins are better than expected.

The strong competitive positioning is a key positive, which could be further enhanced longer term with the Goods and Services Tax, it said.

At 11:38 hrs Marico was quoting at Rs 311.35, down Rs 2, or 0.64 percent on the BSE.

Posted by Rakesh Patil
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