Buy Marico - Karvy

Marico: (CMP: Rs. 204; Target Price: Rs. 232) - BUY

Its Parachute portfolio has been contributing significantly towards its volume growth, which we expect to remain high albeit at slightly slower pace in comparison to past few quarters. Again, Saffola, personal care portfolio of Paras Pharma and global business would continue to contribute to the Company's overall sales growth. Copra prices correction and addition of high margin Paras Pharma's personal care business would also help in maintaining the EBITDA margin.

Outlook & Valuation: Based on 24x P/E on 24-month earnings, we initiate Marico with "BUY" recommendation with a target price of Rs. 231 apiece.

Source : Equity Bulls

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