Reviews

MARICO LTD. 

Ticker : 531642
FV: Rs.1
52-Week H/L: Rs.403.75/325 



We had recommended Marico in Volume no. 36, Issue no. 01 (dated Oct 28, 2019), when the scrip was trading at Rs. 394.65. Our recommendation was backed by factors, such as robust financial performance and better performance than its peers. Marico’s consolidated revenue for Q2FY20 came in flat at Rs. 1,829 crores as compared to Rs. 1,837 crores in Q2FY19. The EBITDA for the quarter grew by 15.7 per cent YoY to Rs. 353 crores from Rs. 305 crores in Q2FY19, with a corresponding margin expansion of 270 bps. The EBITDA margin for the quarter stood at 19.3 per cent. The PAT for the quarter in review arrived at Rs. 253 crores against Rs. 216 crores in Q2FY19, reporting a YoY increase of 17.1 per cent. Due to the decline in copra prices, the company is leveraging benefit towards advertising spends, thereby, strengthening its brand position. Thus, we urge investors to HOLD this scrip.