Marico - 3QFY17 Result Update - Growth trajectory to improve; Upgrade to BUY - Reliance Securities

We expect improvement in Marico's operating performance in the coming quarters on the back of recovery in Parachute volumes, improved currency circulation and likely higher agricultural growth. We expect Marico to post consolidated revenues of Rs62.5bn and Rs70.2bn and net profit of Rs8.3bn and Rs9.6bn in FY17E and FY18E, respectively. Based on expected EPS of Rs7.4, the stock currently trades at 34.4x FY18E earnings. We upgrade the stock to BUY with a Target Price of Rs293, based on 35x Dec'18 earnings.

Shares of MARICO LTD. was last trading in BSE at Rs.255.85 as compared to the previous close of Rs. 255.3. The total number of shares traded during the day was 51445 in over 1302 trades.

The stock hit an intraday high of Rs. 258.3 and intraday low of 253. The net turnover during the day was Rs. 13130006.

Source : Equity Bulls

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