Motilal Oswal 's research report on Marico
Marico’s (MRCO) 4QFY20 sales were marginally below estimates on account of the COVID-19 led lockdown headwinds. However, EBITDA and margins were above estimates due to benign commodity costs and lower ad spends. Further, lower-than-expected tax rate led to the PAT beat. We believe that MRCO’s relatively resilient portfolio of products should help it weather the impact on sales and earnings decline in FY21, unlike several of its peers. Valuations appear attractive at 32x FY22E EPS, below 3/5/10-year average for a business that has better earnings visibility compared to peers. Maintain Buy.
Outlook
Nevertheless, valuations appear attractive at 32x FY22E EPS, below 3/5/10- year average of 44.9x/43x/35.5x, for a business that has better earnings visibility compared to peers. Maintain Buy with TP of INR350.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
