Buy Marico, target price Rs 550: ICICI Securities

ICICI Securities has buy call on Marico with a target price of Rs 550. The current market price of Marico Ltd. is Rs 487.3. Time period given by analyst is year when Marico Ltd. price can reach defined target.

Marico Ltd., incorporated in the year 1988, is a Large Cap company (having a market cap of Rs 63493.96 Crore) operating in FMCG sector.

Marico Ltd. key Products/Revenue Segments include Edible Oil, Others, Personal Care, Export Incentives, Scrap for the year ending 31-Mar-2021.



Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 2444.00 Crore, down -4.23 % from last quarter Total Income of Rs 2552.00 Crore and up 21.23 % from last year same quarter Total Income of Rs 2016.00 Crore. Company reported net profit after tax of Rs 316.00 Crore in latest quarter.

Investment Rationale
Marico should also start seeing the benefits of distribution expansion in both urban (chemist channel) and rural. Healthy foods portfolio continues to trend well and is likely to provide another leg to growth (Rs8.5-10bn in FY24). Increased focus on D2C brands and focus on the premium personal care segment are other positives. A resilient international portfolio adds to potential outperformance in India.

Promoter/FII Holdings
Promoters held 59.51 per cent stake in the company as of 31-Dec-2021, while FIIs owned 25.55 per cent, DIIs 8.58 per cent.