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Prabhudas Lilladher Report
We change our earnings per share estimates of Marico Ltd. by 0.1%/-1.9%/-3.8% on account of lower realisations and milder margin expansion. Volume growth at 4% in Q3 FY23 was enabled by price stability across trade and sequentially improved rural demand.
We believe rural demand should turn positive in Q4 and new launches in foods/home and personal care over the 12 months will also aid volumes. We believe Marico is well placed to accelerate growth due to-
price cuts in Parachute on range bound Copra prices,
launch of new products in mid-sized but high growth categories of peanut butter and mayo,
improved price value equation of Saffola in edible oils post recent price correction,
success of new launches in foods with objective of Rs 8.5-10 billion sales by FY24 and
increased focus on digital brands in HPC with aspiration of Rs 4.5-5 billion topline by FY24 (Rs 2- 2.5 billion in FY23).
We expect sales/profit after tax compound annual growth rate of 8.5% and 13.7% over FY22-25.
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More Research Reports On Marico's Q3 FY23 Results Review
Volume Trajectory Getting Back On Track With Margin Situation Comfortable: Systematix
Inline Operational Performance; Expect Margins To Improve Gradually: Dolat Capital
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