Marico
31.01.2022 - MS on Marico Maintain Overweight CMP 471 Target 651(PREVTGT 670)
04.01.2022 - CITI on Marico - Maintain Buy Target 640
04.01.2022 - Macquarie on Marico - Maintain Outperform CMP 514 Target 600
CLSA ON MARICO: 04.01.2022
* CLSA on Marico: Low-teen topline growth, but the weak margin to drive 4% earnings growth. Volume in India is likely to be flat YOY, with muted performance in parachute
* Low-teen Topline Growth, But Weak Margin To Drive 4% Earnings Growth
* Co Expects Low-teen Q3 Rev Growth - India In Double Digits & Intl Biz In High-teens
* Volume In India Is Likely To Be Flat YoY, With Muted Performance In Parachute
* See Gross Margin At 45%, Up 250 bps QoQ But Down 200bps YoY
* See Operating Margin At 17.9%, Up 40 bps QoQ & Down 160bps YoY
CLSA ON MARICO : 01.09.2021
• Maintain Underperform, Target at Rs 550/share
* Management's aspiration looks aggressive; maintain Underperform
• After success in flavoured oats (94% share), Saffola foods looking for expansion
• Valuation captures new initiatives
• Maintain Underperform on limited upside
CLSA ON MARICO : 01.09.2021
* Management's Aspiration Looks Aggressive
* Focus Now On Scaling Up Foods & Digital-first Brand Portfolio
* Like Its Strategy To Grow Through Multiple Smaller Sub-categories
* Of 10 Launches In In Pre-pandemic Period, 7 Have Not Fared Well
* Expectations Running High On 5 New Initiatives Taken During Pandemic
* Valuation Gap Vs Peers Has Also Been Bridged
* See Downside Risks To Management's Growth Guidance of 13-15%
* MAINTAIN UNDERPERFORM TARGET: 550
JPM on Marico Over Weight, Target Price Rs 600 -26.08.2021
Offers good combination of healthy double digit rev growth, potential MT upside from successful portfolio diversification, moderating COGS inflation & attractive relative vals (43x F23 P/E vs most peers at 47-57x)
UBS ON MARICO : 03.08.2021
• Maintain BUY, Target at Rs 600/share
* Driving growth on multiple fronts
• Raw material inflation to stabilize in H2FY22
* Scale benefit partially offset the impact on profits
CITI ON MARICO : 03.08.2021
* Citi maintains buy call on Marico after an in-line Q1
* Revenue Growth Of 31% Driven By 35% India Growth & 20% International Growth
* Gross & EBITDA Margins Dipped Given The Cost Push
* MAINTAIN BUY TARGET: 595
UBS ON MARICO : 03.08.2021
* UBS maintains Buy call on Marico
* Driving Growth On Multiple Fronts
• Raw Material Inflation To Stabilise In H2
* Gross Margin To Improve Hereon
* Scale Benefits Partially Offset Impact On Profitability
* MAINTAIN BUY TARGET: 600
JPMORGAN ON MARICO : 15.07.2021
* JPMorgan shares its view on Marico's investment in Just Herbs that was announced yesterday, says it is a step towards building at least three Rs 100 cr+ digital brands in 3 years
• Co Building On Digital-first, Mid-premium Ayurvedic BPC Portfolio Via Just Herbs Acquisition
• Just Herbs Acquisition A Step Towards Building At Least Three 100 Cr+ Digital Brands In 3 Years
* MAINTAIN OVERWEIGHT TARGET: 570
CITI ON MARICO : 15.07.2021
• Business momentum remains healthy with tailwinds for key brands
* Tailwinds of key brands including Parachute/Saffola
• New launches and go-to-market initiatives are mid-term positives
* Recent softening of input costs should aid profitability near-term
CITI ON MARICO : 15.07.2021
* All digital brands could contribute low-to-mid single digits to Marico's earnings by FY24, Citi says
* All Digital Brands Could Contribute Low-to-mid Single Digits To Earnings By FY24
* After Beardo & Just Herbs, Probability Of A Food D2C Brand Under Marico May Be High
* MAINTAIN OVERWEIGHT TARGET: 595
CITI ON MARICO : 05.07.2021
* Maintain BUY, Target at Rs 595/share
• See no material surprises from Marico's 1Q trading update
* Revenue growth will be healthy
* Margins will contract on last year's abnormally high base
• EBITDA growth will be in mid-single digits YoY in Q1
* Medium-term expect a steady business outlook
CITI ON MARICO : 05.07.2021
* MAINTAIN BUY TARGET: 595
* Citi continues to have a Buy call on Marico
* No Material Surprises From Q1 Trading Update
* Rev Growth Will Be Healthy & Margin Will Contract On Last Year's High Base
* 8% 2-yr CAGR Should Be One Of The Highest In Staples Coverage
GOLDMAN SACHS ON MARICO : 05.07.2021
* GS maintains Neutral stance on Marico after Q1 business update
* MAINTAIN NEUTRAL TARGET: 475
• Q1 Trading Update: Input Cost Inflation Offsetting Revenue Growth
* Co Expects To Deliver Muted Bottom Line Growth In The Quarter
CREDIT SUISSE ON MARICO : 29.06.2021
* Maintain Outperform, Target at Rs 600/share
* Marico to achieve its revenue target for Saffola Foods by FY24
* Saffola scores strongly on the two key factors for TAM expansion
* Marginally lower our FY22E EPS (~2%) due to near term margin pressures
* Raise Target price to Rs 600/share from Rs 490/share
CS ON MARICO : 29.06.2021
* It would be amongst most successful TAM expansion in FMCG space in this decade if Marico achieves FY24 rev tgt for Saffola Foods, says Credit Suisse. It believes, Saffola Foods expansion can drive a re-rating in co, target raised to Rs 600/sh
* Amongst Most Successful TAM Expansions If FY24 Rev Tgt For Saffola Is Achieved
* In Our Base Case, We See Saffola Foods Reaching *740 Cr Of Revenue In FY24
* 850 Cr Tgt In Foods Will Be Achieved Via One More Category Entry
* Need Faster Ramp-up In Honey & Soya Chunks To achieve The Revenue Target
* Lower Our FY22 EPS Estimate By 2% Due To Near-term Margin Pressures
* Saffola Foods Expansion Can Drive A Re-rating In Co
* Raise Target Price To 600 From $490/Sh
