A director at Marico Limited sold 6,690 shares at 490.000INR and the significance rating of the trade was 69/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly ...
The independent financial analyst theScreener just lowered the general evaluation of MARICO (IN), active in the Personal Products & Services industry. As regards its fundamental valuation, the title now shows 0 out of 4 stars while market behaviour can be considered defensive. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Neutral. As of the analysis date February 1, 2022, the closing price was INR 497.65 and its t...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
MARICO: In line result; gross margin likely to have troughed (MRCO IN, Mkt Cap USD9.5b, CMP INR546, TP INR635, 16% Upside, Buy) MRCO’s 1QFY22 result was in line with our expectations. Sales momentum continues to remain healthy. With Copra prices sharply declining from their peak in recent months, coupled with price increases taken, the management said gross margin is likely to revive in 2Q before increasing significantly in 2HFY22. It maintained its strong growth guidance for the Foods b...
Marico: Results better than expectations, earnings outlook unclear (MRCO IN, Mkt Cap USD5.7b, CMP INR315, TP INR332, 5% Upside, Neutral) Brief view on results and stock Marico’s 3QFY20 results, particularly in terms of profitability, were better than the low guidance given in the company’s end of quarter press release. However, commentary has significantly worsened in recent months on all three erstwhile bastions of our investment case viz. (a) better volume visibility v/s peers, (b) s...
Q2FY20 result highlights Marico’s cons. revenue fell 0.4% yoy at Rs18.3bn (est: Rs19.5bn), EBITDA grew by 15.8% yoy to Rs3.5bn (est: Rs3.7bn), PBT grew by 16% yoy to Rs3.4bn (est: Rs3.5bn) and Adj PAT grew by 17% yoy at Rs2.5bn (est: Rs2.6bn). Overall volumes grew 3% yoy. India volumes grew by just 1% yoy (est: 5%). Parachute sales declined by 4% (volume decline of 1% yoy), VAHO sales declined by 6% (flat volumes), Saffola sales were up by 5% (volume growth of 1% yoy). International busines...
MARICO: Uncertainty in volume growth a dampener; Downgrade to Neutral (MRCO IN, Mkt Cap USD7.2b, CMP INR393, TP INR420, 7% Upside, Downgrade to Neutral) 2QFY20 consol. net sales declined 0.4% YoY to INR18.3b (v/s est. INR20b). Domestic revenue decreased ~3% YoY with volume growth of only 1%. Consol. EBITDA grew 15.7% YoY to INR3.5b (v/s est. INR3.5b). PBT grew 16% to INR3.4b (v/s est. INR3.4b). Adj. PAT rose 17.1% YoY to INR2.5b (v/s est. INR2.5b). 1HFY20 sales/EBITDA/PAT grew 3.4%/ 21.3%...
We met the management of Marico, following are the key takeaways: Progressive moderation to result in subdued volume growth in 2Q – In line with peers, Marico too has pointed out towards progressive slowdown seen across categories in 2QFY20E. Further, the weak consumer sentiment has also resulted in correction in inventory in the trade channel thereby affecting the primary sales for the company. Rural market has seen higher moderation in 2QFY20E and now growing at par with the urban market. How...
Q1FY20 result highlights Marico’s consolidated revenue grew by 6.9% yoy at Rs21.7bn (est. Rs21.6bn), EBITDA grew by 25.7% yoy at Rs4.6bn (est. Rs4.55bn), Adj. PAT increased by 28.7% yoy at Rs3.3bn (est Rs3.3bn). Domestic volume growth was 6% yoy (est: 6%). Parachute volumes increased by 9% yoy, VAHO & Saffola volumes increased by 7% and 3% yoy respectively. In value terms, Parachute/VAHO/Saffola grew by 8%/11%/6% respectively. International business sales grew by 9% yoy (7% yoy in constant...
MARICO: Strong earnings performance, favorable outlook reinforces positive view (MRCO IN, Mkt Cap USD6.8b, CMP INR363, TP INR430, 19% Upside, Buy) Marico's 1QFY20 consol. net sales grew 6.9% YoY to INR21.7b (est. INR22.5b). Domestic revenue grew ~5.5% YoY led by volume growth of 6%. Cons. EBITDA grew 26% YoY to INR4.6b (est. INR4.6b). Adj. PAT surged 28.2% YoY to INR3.3b (est. INR3.4b). gross margin expanded 520bp YoY to 47.5%. Higher A&P expenses as % of sales (+190bp YoY to 10.1%; ab...
Marico: Copra costs trends better than expectations (MRCO IN, Mkt Cap USD7b, CMP INR373, TP INR435, 17% Upside, Buy) Sales growth momentum, new launch trajectory and commodity cost trends are key determinants of earnings growth for FMCG companies like Marico (MRCO). Importantly, the company's commentary of late on these has been encouraging. We also looked at the key points in MRCO's pre-quarter update released on 3rd July. Overall, we believe that MRCO is much better placed than peers in t...
MARICO: High visibility on volumes/margins strengthens outlook (MRCO IN, Mkt Cap USD6.3b, CMP INR340, TP INR425, 25% Upside, Buy) 4QFY19 consol. net sales grew 8.7% YoY to INR16.1b (our estimate: INR16.6b). Domestic revenue increased ~6% YoY, led by volume growth of 8% YoY. Consol. EBITDA grew 12.2% YoY to INR2.8b (our estimate: INR3b). Adj. PAT rose 16.3% YoY to INR2.1b (our estimate: INR2.2b). gross margin expanded 240bp YoY to 49%. However, higher A&P costs (+160bp YoY to 9.5% of sa...
Marico: Another month of benign RM price environment; Copra prices ease further, other commodity prices benign too (MRCO IN, Mkt Cap USD6.8b, CMP INR364, TP INR460, 26% Upside, Buy) Input cost prices have significant implications on Marico’s (MRCO) business operations. In this note, we thus provide an update on the price trends in copra and other key commodities for MRCO in Mar’19: Copra cost down 7.7% MoM As mentioned in our 4QFY19 for MRCO (2nd April’19), input cost pressure is easin...
Marico: Good offtake led by stable demand growth; New product development velocity remains strong (MRCO IN, Mkt Cap USD6.5b, CMP INR346, TP INR460, 33% Upside, Buy) Marico (MRCO) released its pre-quarterly update for the quarter ended Mar’19. Key highlights: The demand environment remained stable in 4QFY19 with good offtake growth. Rural traction remained intact, exceeding urban growth in the traditional channel. Newer channels (modern trade and e-commerce) are growing robustly. Even CSD...
Q3FY19 result highlights Marico’s consolidated revenue increased by 14.6% yoy at Rs18.6bn (est Rs18.7bn), EBITDA increased by 16% yoy at Rs3.5bn (est Rs3.55bn) and PAT increased by 13% yoy at Rs2.5bn (est Rs2.55bn). Domestic volume growth was 5% yoy (est:7%). Parachute volumes increased by 9% yoy, VAHO & Saffola volumes increased by 7% and 2% respectively. In value terms, Parachute/VAHO/Saffola grew by 19%/19%/8% respectively. International business grew by 11% yoy in constant currency term...
Marico: Performance in-line, outlook remains robust (MRCO IN, Mkt Cap USD6.6b, CMP INR364, TP INR470, 29% Upside, Buy) net sales grew 14.6% YoY to INR18.6b (our estimate: INR18.1b) in 3QFY19. Domestic revenue increased ~13% YoY, with 5% volume growth. EBITDA grew 15.8% YoY to INR3.5b (in-line). Adj. PAT increased 12.7% YoY to INR2.5b (in-line). gross margin shrank 40bp YoY to 46.3%. However, EBITDA margin expanded 20bp YoY to 18.8% (our estimate: 19.1%), led by lower consol. A&P expen...
MARICO: Parachute likely to report healthy growth; Overall 3QFY19 demand in fine fettle; rural doing well (MRCO IN, Mkt Cap USD7b, CMP INR378, TP INR465, 23% Upside, Buy) For the first time, Marico (MRCO) released a pre-quarterly update for the quarter ended Dec’18. Key highlights:- Overall demand environment was good in 3QFY19 with market share gains across key portfolios. The positive sentiment during the quarter was led by festive season and expectations of a stimulus from Government ...
MARICO: New products traction picking up; promising to boost medium-term earnings growth prospects (MRCO IN, Mkt Cap USD6.7b, CMP INR373, TP INR465, 25% Upside, Buy) Over the past few years, one of the disappointments investors harbored for Marico was regarding the subdued performance of its new launches. Except for Saffola Masala oats (launched over six years ago) none of the new launches have contributed significantly to the sales growth. However, over the past 18 months, Marico has pulle...
Q2FY19 result highlights Marico’s consolidated revenue increased by 19.6% yoy at Rs18.4bn (est Rs17.7bn), EBITDA increased by 13.5% yoy at Rs2.9bn (est Rs2.7bn) and PAT increased by 18% yoy at Rs2.2bn (est Rs2bn). Revenue growth was driven by overall volume growth of 6% yoy. India volumes increased by 6% yoy (ex-CSD volume growth was 7% yoy) and International business volumes increased by 8% yoy. Parachute/Saffola/VAHO sales increased by 32%/9%/12% with volume growth of 8%/5%/5% yoy. Ex CSD...
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