External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

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External broker reports(aggregated public sources)

HDFC securities is the best online trading platform for stocks, IPOs, mutual fund in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>We upgrade Marico to BUY from ADD with TP of Rs 650 (45x FY26 EPS, 10% premium to its 5 year Average PE) and move it to high conviction list within staples pack as worst is behind us wr.t muted volume growth, pricing correction, loss related to new business and transient currency headwinds</li><li>We expect Marico to see Revenue/ Ebitda / PAT Cagr of 6/13/13% respectively over FY23-26 as 1) Domestic business fires on all cylinders –(a) Parachute (35% of domestic sales) expected to see mid-single volume growth on back of market share gains and conversion from unbranded to branded, as we have always seen in inflationary copra environment</li><li>Moreover, we expect double digit revenue growth in FY25 on back of mid to single digit price hikes (b) Saffola edible oil (20% of domestic sales) expected to see volume led mid single digit value growth in FY25, courtesy pricing correction anniversarian (down 20% in FY24) (c) VAHO – easing competitive intensity in BOP segment along with uptick in mid to premium end segment shall drive much better outcomes</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

We upgrade Marico to BUY from ADD with TP of Rs 650 (45x FY26 EPS, 10% premium to its 5 year Average PE) and move it to high conviction list within staples pack as worst is behind us wr.t muted volume growth, pricing correction, loss related to new business and transient currency headwindsWe expect Marico to see Revenue/ Ebitda / PAT Cagr of 6/13/13% respectively over FY23-26 as 1) Domestic business fires on all cylinders –(a) Parachute (35% of domestic sales) expected to see mid-single volume growth on back of market share gains and conversion from unbranded to branded, as we have always seen in inflationary copra environmentMoreover, we expect double digit revenue growth in FY25 on back of mid to single digit price hikes (b) Saffola edible oil (20% of domestic sales) expected to see volume led mid single digit value growth in FY25, courtesy pricing correction anniversarian (down 20% in FY24) (c) VAHO – easing competitive intensity in BOP segment along with uptick in mid to premium end segment shall drive much better outcomesContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Marico (4QFY24): Well Oiled for Growth. Upgrade to BUY

Marico Ltd

Marico (4QFY24): Well Oiled for Growth. Upgrade to BUY