Moneycontrol
Get App
Last Updated : Feb 14, 2019 03:45 PM IST | Source: Moneycontrol.com

Buy Marico; target of Rs 394: HDFC Securities

HDFC Securities is bullish on Marico has recommended buy rating on the stock with a target price of Rs 394 in its research report dated February 06, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

HDFC Securities' research report on Marico


Marico delivered a mixed bag with beat in revenue growth and miss on gross margins. Net revenues grew by 15% (exp of 13%) with volume growth of 6% (exp. 6%). The co. benefited from softening of copra prices (-23% YoY, -12% QoQ) but wasn’t able to expand GM owing to volatile prices of other commodities. Marico’s GM pressure was the least in 3Q vs. HUL, Dabur and Emami. EBITDA/APAT grew by 16/12% (exp 23/20%).


Outlook


The company will enjoy an earnings upcycle resulting in sustaining rich valuations. We value Marico based on P/E of 35x Dec-20 with TP of Rs 394. Maintain BUY.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

First Published on Feb 14, 2019 03:45 pm
More From
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant