Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessStocks

Accumulate Marico; target of Rs 388: Dolat Capital

Dolat Capital recommended accumulate rating on Marico with a target price of Rs 388 in its research report dated August August 01, 2019.

August 02, 2019 / 03:13 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Dolat Capital's research report on Marico

Marico’s Q1FY20 revenue was in line with our estimate, but EBITDA and APAT was a beat. Volume growth was 6%, on a base of 12.5% growth. Although volume growth in Parachute was impressive at 9%, VAHO and Saffola posted mere 3% volume growth. VAHO reported improvement in performance, volume growth improved to 7% in Q1FY20 vs 1% in Q4FY19. The company continues to gain traction in modern trade and e-commerce. However, general trade in urban markets posted decline during Q1FY20. GM improved significantly (+500bps), from Q1FY19, primarily due to a decline in copra prices. We believe the trend will continue as copra prices are trading at low levels, compared to last year. We also believe that Saffola and VAHO volumes would recover, due to a favorable base, and the Parachute brand will continue its strong growth. In addition, low RM costs will help improve margin performance.

Outlook

We have upward revised our FY20E and FY21E EPS estimates at ` 9.3 and ` 10.2 respectively. Valuing the stock at 38x FY21E EPS to arrive at a TP of `388. Maintain Accumulate.

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.

Broker Research
first published: Aug 2, 2019 03:13 pm

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!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347