Marico - Problems More Than Solutions: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Consensus (including us) has four expectations from Marico Ltd. – drive market share gains led volume growth in coconut oil portfolio, consistency in the performance of value added hair oil with expansion into premium segment,drive penetration-led volume growth in Saffola edible oil, and continued revenue momentum in Foods (to provide comfort on the expansion of Saffola franchise). While Marico has been consistently taking steps (proactive pricing actions, launch of premium VAHO) towards delivering these expectations, macro headwinds (commodity prices volatility, rural slowdown etc.) have led to undesirable outcomes in the near term for core segments. There are lingering questions about structural growth deceleration for hair oil too (as observed in performance of all hair oil players). We believe improvement of operating environment is important as it may provide enabling conditions for Marico’s expansion into new segments (foods and premium VAHO). Marico should also start seeing the benefits of distribution expansion in both urban (chemist channel) and rural regions. Healthy foods and digital-first brands’ portfolios continue to trend well and are likely to provide another leg to growth). We continue to believe that Marico's leadership which has a strong track record of outperformance will find solutions in long term..Tata Motors' JLR, Turning The Corner: Motilal Oswal.Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Marico - Problems More Than Solutions: ICICI Securities

We continue to believe that Marico's leadership which has a strong track record of outperformance will find solutions in long term

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