Buy Marico, target price Rs 595: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Marico with a target price of Rs 595.The current market price of Marico is Rs 522.25.

Marico, incorporated in the year 1988, is a Large Cap company (having a market cap of Rs 67363.09 Crore) operating in FMCG sector.

Marico key Products/Revenue Segments include Edible Oil, Others, Personal Care, Export Incentives, Scrap for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 2515.00 Crore, down -2.33 % from last quarter Total Income of Rs 2575.00 Crore and up 2.91 % from last year same quarter Total Income of Rs 2444.00 Crore. Company has reported net profit after tax of Rs 307.00 Crore in latest quarter.

The company’s top management includes Mr.Harsh Mariwala, Mr.Apurva Purohit, Mr.Milind Barve, Mr.Ananth Sankaranarayanan, Mr.Nayantara Bali, Ms.Hema Ravichandar, Mr.Nikhil Khattau, Mr.Rishabh Mariwala, Mr.Rajendra Mariwala, Mr.Saugata Gupta, Mr.Rajeev Vasudeva. Company has B S R & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 129 Crore shares outstanding.

Investment Rationale
After achieving ~6% sales CAGR over FY15–20, MRCO's sales momentum has improved with double-digit sales CAGR expected over FY20–24. This is likely to sustain beyond FY24 as well, propelled by: a) the ongoing topline growth momentum in each of MRCO’s core segments, b) significantly higher growth rates as well as targets in the Foods portfolio, and c) the INR4.5–5b targeted from its 'digital first' range of products.

Promoter/FII Holdings
Promoters held 59.48 per cent stake in the company as of 30-Sep-2022, while FIIs owned 25.16 per cent, DIIs 9.71 per cent.