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Last Updated : Dec 26, 2019 10:58 AM IST | Source:

Buy Marico target of Rs 395: Sharekhan

Sharekhan is bullish on Marico has recommended buy rating on the stock with a target price of Rs 395 in its research report dated December 23, 2019.

Broker Research @moneycontrolcom

Sharekhan's research report on Marico

Slowdown in the domestic demand for consumer products and stiff competition from low-priced brands affected sales volumes of Parachute rigid packs and value-added hair oils in Q2FY2020. The company has undertaken required pricing actions by giving price-offs of Rs. 5 on the 100 ml and 250 ml packs, while Rs. 20 was slashed for Saffola Gold in December 2019. Price-offs in Parachute might revive sales volume of rigid packs, but recovery in value-added hair oils and Saffola edible oil will take time; we reduce earnings estimates by 4% and 9% for FY2020 and FY2021 to factor in slower revenue growth and lower-than-earlier expected OPM.


Stock has corrected by 14% in last three months factoring in near-term headwinds; retain Buy with revised PT of Rs. 395.

For all recommendations report, click here

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First Published on Dec 26, 2019 10:58 am
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