Performance in line; volume recovery sluggish

Company
30 Jan 2024
5 Min read 
  • Marico reported in-line revenue growth with a marginal beat on EBITDA.
  •  Domestic revenue was flat due to price cuts and unchanged volume trend.
  •  Gross margin hit a 23-quarter high of 51.3% in 3QFY24.
  •  Management raised its EBITDA margin guidance by ~250bp to 21% for FY24.
  •  Domestic revenue is expected to improve in the coming quarters with gradual volume recovery.
  •  The stock has a buy rating with a target price of INR625.
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