Thread by @ketanmba03

Marico CMP 337
👎Uninspiring performance over the last 1 year
👎Headwinds in the hair oil segment have hurt recent operational performance
👍25% of the hair oil market is still in the unorganized space and this offers growth opportunity

#Marico
#FMCG

👍H2 FY20 would see better volume growth due to price cuts
👍Improvement in gross margins due to the lower prices for RM
👍In Q2 FY20, copra prices were lower by 10% YoY & Mgt expects prices to remain in lower range in near term
👎Vol growth was also hurt by flood like situations

👍Building/Expanding new biz such as food franchise, skin care, male grooming range & serums
👍This will reduce dependancy on Parachute & Saffola
👍Foods franchise posted strong growth of 34% YoY
👍Modern trade (29% sales growth in Q2) & e-commerce (75% YoY) continue to do well

👉Liquidity challanges for both urban & rural general trade remain a key aspect
👉Continuation of rural distress can be a drag though there are a few signs of improvement bcoz of the positive outlook for rabi crops
👉Marico's rural exposure (~30%) is lower than major FMCG names

👉Stock trading at significant discount to FMCG tier-1 stocks like #Dabur #HUL #GodrejConsumer #Britannia
👉Marico looks good on chart

@Rishikesh_ADX @Stockstudy8 @Atulsingh_Asan @Arunstockguru @caniravkaria @krishnblue @koolvicky @nid_rockz