Result Update: Marico Ltd - ACCUMULATE - TP Rs.327 - Kotak

Marico's 3QFY18 results came in ahead of estimates, as the company brought in robust domestic performance and costs came in lower than expectations. The company's release indicates that gains in cost management in items such as A&SP could be persistent. Marico tends to be a gainer when copra prices rise. Further, the company is likely witnessing some benefits from a higher shift from unorganized to organized market in CNO. The company continues to make market share gains in most categories and is performing well across most geographies (Vietnam being the significant exception). We value Marico at 35X FY20E PER, or Rs 327 (Rs 315 earlier, roll-forward valuation to FY20E). Raise recommendation to ACCUMULATE (REDUCE earlier).

Shares of MARICO LTD. was last trading in BSE at Rs.307.95 as compared to the previous close of Rs. 309.45. The total number of shares traded during the day was 28168 in over 1128 trades.

The stock hit an intraday high of Rs. 310.5 and intraday low of 303.15. The net turnover during the day was Rs. 8611387.

Source : Equity Bulls

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