Add Marico, target price Rs 575: HDFC Securities

HDFC Securities has add call on Marico with a target price of Rs 575. The current market price of Marico is Rs 498.15.

Marico, incorporated in the year 1988, is a Large Cap company (having a market cap of Rs 64344.03 Crore) operating in FMCG sector.

Marico key Products/Revenue Segments include Edible Oil, Others, Personal Care, Export Incentives, Scrap for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 2515.00 Crore, down -2.33 % from last quarter Total Income of Rs 2575.00 Crore and up 2.91 % from last year same quarter Total Income of Rs 2444.00 Crore. Company has reported net profit after tax of Rs 307.00 Crore in latest quarter.

The company’s top management includes Mr.Harsh Mariwala, Mr.Apurva Purohit, Mr.Milind Barve, Mr.Ananth Sankaranarayanan, Mr.Nayantara Bali, Ms.Hema Ravichandar, Mr.Nikhil Khattau, Mr.Rishabh Mariwala, Mr.Rajendra Mariwala, Mr.Saugata Gupta, Mr.Rajeev Vasudeva. Company has B S R & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 129 Crore shares outstanding.

Investment Rationale
The brokerage models 4% YoY domestic revenue growth, with ~5%domestic volume growth YoY. Three-year volume CAGRat 6%.

Promoter/FII Holdings
Promoters held 59.48 per cent stake in the company as of 30-Sep-2022, while FIIs owned 25.16 per cent, DIIs 9.71 per cent.