The Management is remained focused on building back its gross margin and investing competitively in advertisement and promotional activity. FMCG markets are recovering gradually although the operating environment remains challenging. In this context the company have delivered a resilient and competitive performance whilst stepping up its EBITDA margin.
Earning Highlights Q1FY24:
As per the Management, ‘FMCG markets are recovering gradually although the operating environment remains challenging. In this context the company have delivered a resilient and competitive performance whilst stepping up its EBITDA margin.
In the near-term, FMCG industry will continue to witness rebalancing of price-volume growth equation and a gradual recovery in consumer demand. In this environment the company will continue to provide superior value to its consumers and invest behind its brands. The company remain focused on driving its long-term strategic priorities including market development and building distinctive capabilities for the future.
The Management is confident of the medium to long term prospects of the Indian FMCG sector and the company’s ability to deliver a Consistent, Competitive, Profitable and Responsible growth
Valuation & View:
At the CMP of Rs. 2,650, the stock is trading at annualised P/E multiple of 60 times with the annualised EPS of Rs. 43.80, which is fairly valued.
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