Marico Ltd - Q1 FY22 Result Report - YES Securities

(Rating: BUY, TP: Rs 628 Upside: 15%)

- View - We model in revenue/EBITDA/PAT CAGR of 14%/15%/15% over FY21-24E and reiterate BUY rating with a PT of Rs 628 based on 45x FY24E EPS, a 10% premium to its 5-yr average multiple and in-line with the multiples given to peers like GCPL, Tata Consumer and Dabu

- Revenue - 35% growth in domestic business with 21% volume growth, 21% CC growth in international business driving 31% consolidated revenue growth (2-yr CAGR of 8%).

- Margins - 890bps GM decline (copra, rice bran oil, LLP, HDPE inflation) leading to 530bps EBITDA margin decline to 19%, 320bps sequential margin improvement indicating bottom is behind, 27% growth in A&P spends.

Shares of Marico Limited was last trading in BSE at Rs. 536.5 as compared to the previous close of Rs. 546.35. The total number of shares traded during the day was 82185 in over 3326 trades.

The stock hit an intraday high of Rs. 552.2 and intraday low of 533. The net turnover during the day was Rs. 44467183.

Source : Equity Bulls

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