Accumulate Marico - 4QFY13 results - Kotak

Marico reported a weak set of financials for 4QFY13, largely on account of continued weakness in international operations, affected mostly by Middle East region. Growth in certain key categories (coconut oil, edible oils) has also been soft, as relative prices premium of these continued to be high in a part of the quarter. On the positive side, Bangladesh geography is showing signs of pickup, and value-added hair oils, new products continue to show strong growth.

We believe long-term drivers of the stock remain intact and several negatives are transitory in nature. In the near-term, high valuations are likely to find support from an earnings upswing (26% growth in FY14), Kaya demerger and listing (Sep/ Oct, 2013). Maintain ACCUMULATE, with a price target of Rs 248.

Source : Equity Bulls

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