FMCG firm Marico, which will announce its March quarter earnings on April 6, is expected to report net profit growth of 15-22%.
The pre-Q4FY19 commentary seems decent, while India business volume growth should be around 8 percent YoY, said CLSA.
It forecast the company to report more than 15 percent growth in EBITDA as well as net earnings. The company is a top pick due to a strong launch pipeline and margin visibility.
The global research firm has maintained a buy on the stock with a target at Rs 465 per share.
Kotak Institutional Equities expects Marico to report a consolidated net profit of Rs 211.4 crore, up 17.1 percent year-on-year (down 14.5 percent quarter-on-quarter).
Net Sales are expected to increase by 14.9 percent YoY (down 8.6 percent QoQ) to Rs. 1,700.8 crore while Earnings before interest, tax, depreciation and amortisation (EBITDA) is likely to rise 20.7 percent YoY (down 12.7 percent QoQ) to Rs 304.5 crore.
ICICI Direct expects the FMCG company to report net profit at Rs 212.2 crore, up 15.8 percent year-on-year (down 15.7 percent quarter-on-quarter).
According to Motilal Oswal, sales of Marico is likely to grow 12.1 percent YoY to ~Rs 1,660 crore, with 8.5 percent growth in domestic volumes while gross margin expansion is likely to clock 70bp YoY to 47.3 percent. EBITDA is expected to grow at 18.5 percent YoY, with margin expansion of 100bp YoY to 18.5 percent in the quarter.
Adjusted PAT is projected to grow by 22.7 percent YoY to ~Rs 220 crore, higher than EBITDA growth, due to a low tax rate in the base, Motial Oswal added
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