December 14, 2016 / 15:38 IST
The company reported flat sales growth in November, mainly due to the cash crunch post demonetization. However, management expects growth of 5-10% in December with improving new currency circulation. We believe demand for Mango Sip and Fruits Up should not be affected much once the demonetization-led impact subsides, given that they are low-ASP products.
Outlook
We broadly maintain our estimates for FY17E/FY18E. The company’s presence in smaller SKU products, addition of new capacities and foray into newer geographies provide us comfort. Also, its planned advertisement campaign for Fruits Up should complement its recent Fruits Up capacity addition at Ambala. Thus, we expect MANB to register robust revenue and PAT CAGR of 54% and 64%, respectively, over FY16-19E. We value the stock at P/E of 32x FY18E EPS with a target price of INR 761 (33% upside) and reiterate our Buy rating.
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