Motilal Oswal is bullish on Marico has recommended buy rating on the stock with a target price of Rs 425 in its research report dated May 06, 2019.
Motilal Oswal's research report on Marico
4QFY19 consol. net sales grew 8.7% YoY to INR16.1b (our estimate: INR16.6b). Domestic revenue increased ~6% YoY, led by volume growth of 8% YoY. Consol. EBITDA grew 12.2% YoY to INR2.8b (our estimate: INR3b). Adj. PAT rose 16.3% YoY to INR2.1b (our estimate: INR2.2b). Consol. gross margin expanded 240bp YoY to 49%. However, higher A&P costs (+160bp YoY to 9.5% of sales) and employee expenses (+30bp YoY to 7.3%) restricted EBITDA margin expansion to 50bp YoY (17.6% v/s our est. of 18%).
Targeting 40x Mar'21 EPS, we get a TP of INR425 (25% upside). Maintain Buy.
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