Marico - Q1FY14 Results - Kotak

Marico has reported a strong set of financials for 1QFY14. Revenues grew 9% y/y, and EBITDA grew 23% y/y (+10% versus our expectations). Key positives of the result included return to double digit growth in Safolla, and strong performance of international operations. Marico has outperformed industry growth rate in the current quarter. The company is showing signs of turnaround in several categories/ geographies that have shown weakness in recent past, and new categories continue to perform strongly. Valuations have corrected in the past month to offer a more attractive entry point. The stock could remain weak in the short-term (weakness in FY15 est. on higher effective tax rate) but we think price-value gap is attractive. Maintain ACCUMULATE, with a price target of Rs 226.

Source : Equity Bulls

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