Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Remarks: Marico is one of the strongest players in the Indian hair care and edible oil markets. Its flagship brand
Parachute along with Nihar commands a 54% share in the domestic branded coconut oil market. Its portfolio
of value-added hair oil got strong traction in the domestic market helping it to clock around 20% volume
growth in the domestic market. The company’s good for heart edible oil brand Saffola is also witnessing midteen
volume growth on account of improving consumer awareness.
Apart from domestic operations, Marico has strong international presence in Bangladesh, Egypt, South Africa,
and the recently entered South East Asia. Though the near-term performance has been affected by political
instability and high inflationary environment in some of the international markets, we believe the long-term
growth potential is intact in these markets.
Kaya is showing signs of improvement with a double-digit same-store collection growth in the past few quarters.
Any significant increase in the prices of the key raw materials (including copra) and a slowdown in the sales
volume growth would act as the key risks to our earnings estimates.
We expect the top line to grow at a CAGR of about 25% over FY2011-13 and the bottom line to grow at a CAGR
of 30% over the same period (on the back of an expected improvement in the margins due to the softening of
raw material prices). At the current market price the stock trades at 32.9x its FY2012E EPS of Rs5.3 and 24.6x
its FY2013E EPS of Rs7.1.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Remarks: Marico is one of the strongest players in the Indian hair care and edible oil markets. Its flagship brand
Parachute along with Nihar commands a 54% share in the domestic branded coconut oil market. Its portfolio
of value-added hair oil got strong traction in the domestic market helping it to clock around 20% volume
growth in the domestic market. The company’s good for heart edible oil brand Saffola is also witnessing midteen
volume growth on account of improving consumer awareness.
Apart from domestic operations, Marico has strong international presence in Bangladesh, Egypt, South Africa,
and the recently entered South East Asia. Though the near-term performance has been affected by political
instability and high inflationary environment in some of the international markets, we believe the long-term
growth potential is intact in these markets.
Kaya is showing signs of improvement with a double-digit same-store collection growth in the past few quarters.
Any significant increase in the prices of the key raw materials (including copra) and a slowdown in the sales
volume growth would act as the key risks to our earnings estimates.
We expect the top line to grow at a CAGR of about 25% over FY2011-13 and the bottom line to grow at a CAGR
of 30% over the same period (on the back of an expected improvement in the margins due to the softening of
raw material prices). At the current market price the stock trades at 32.9x its FY2012E EPS of Rs5.3 and 24.6x
its FY2013E EPS of Rs7.1.
No comments:
Post a Comment