Marico Ltd - Changing Dynamics; Downgrade to HOLD - Emkay

Reco: HOLD
CMP: Rs 212
Target Price: Rs 220

- Weak performance at consolidated level; revenues +4.7% yoy Rs 11.2bn, EBIDTA margin expand 200bps yoy to 15% and APAT +25% yoy Rs 1.1bn

- Core brands fritter with Parachute volumes at dismal 1% yoy and Saffola at 7% yoy; Also FMCG volume growth at 4% yoy

- Accounting adjustments; Kaya business demerged w.e.f October 17, 2013 and dividend payments of Rs449 mn received from Marico Bangladesh

- Changing business dynamics warrant a rating change; Downgrade to HOLD with price target of Rs 220/Share

Source : Equity Bulls

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