Motilal Oswal 's research report on Marico
Marico (MRCO) reported a beat on all fronts, barring volumes, in 1QFY21 results, with a surprise on margins. Importantly, May and June witnessed positive sales growth, and this trend has continued in July. Recovery has been seen in Value-Added Hair Oils (VAHO) as well, along with Parachute and Saffola continuing to do well. The base is also more favorable. With earnings much better than previously feared EPS decline, valuations still appear inexpensive at 36.8x FY22 EPS. Targeting 40x Jun’22 EPS, we arrive at TP of INR405, implying 16% upside.
We target 40x Jun’22 EPS, giving us TP of INR405, implying 16% upside.
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