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Last Updated : Feb 14, 2018 11:16 AM IST | Source:

Brokerages maintain Buy on Marico, expect up to 16% return with strong revenue growth

BofAML has maintained a buy with a target at Rs 360 per share and feels that rural reviving and copra is likely to peak out in H2CY18 and feels that resilient EPS CAGR with table RoE will drive multiples.

Sandip Das @Im_Sandip1

Marico reported a 16.51 percent increase in its consolidated net profit at Rs 223.28 crore for the quarter ended December 2017 on account of higher income led by market share gains. The company had posted a net profit of Rs 191.64 crore during the October-December quarter of the previous fiscal.

Total income during the quarter under review stood at Rs 1,641.74 crore. It was Rs 1,439.99 crore in the year-ago period.

Moneycontrol takes a snapshot of what top research firm think about the stock:

Brokerage: BofAML | Rating: Buy | Target: Rs 360, Return: 16%

Global research firm BofAML has maintained a buy on Marico with a target at Rs 360 per share. It is of the view that rural reviving and Copra is likely to peak out in H2CY18 and feels that resilient EPS CAGR with table RoE will drive multiples.

The house expects an EPS CAGR of 16 percent over FY17-19.

Brokerage: CLSA | Rating: Underperform | Target: Rs 330

Research and broking firm CLSA has kept an underperform rating on Marico. It is of the view that Q3 operating margin was a tad better despite GM pressure. However, it feels that margin headwinds may continue.

CLSA sees Marico as a strong franchise while margin pressure remains a concern

Brokerage: Macquarie | Rating: Outperform | Target: Rs 360, Return: 16 percent

Macquarie has maintained an outperform rating on Marico has has raised the target to Rs 360 from Rs 340 per share. The house feels that FY19 revenue growth is set to be strong on the back of Parachute. However, the house has cut FY18-20 earnings by 2-4 percent.

Saugata Gupta, MD and CEO of Marico, in an interview to CNBC-TV18 said that 8-10 percent volume growth in Q4 and for FY19 is very much possible. However, significant drop in the ad-spends has been in more in international business, not in India. India – like-to-like - there has been a 14 percent increase in ad-spends in the quarter, he said.

At 11:10 hrs Marico was quoting at Rs 314.70, up Rs 4.40, or 1.42 percent. It has touched an intraday high of Rs 317.10 and an intraday low of Rs 312.00.
First Published on Feb 14, 2018 11:16 am
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