Review

MARICO 

Ticker : 531642
FV : Rs 1
52-Week H/L : Rs  403.70/233.80

We had previously recommended Marico Ltd in volume no 36, issue no 1 (dated October 28, 2019), when the scrip was trading at Rs 394.65 and was recommended based on the company’s strong fundamentals and also because, the stock was attractive at that time. Marico Limited is a consumer products company operating in the beauty and wellness space with products including edible oils and value-added hair oils. On the consolidated financial front, the net sales for Q4FY20 decreased by 7.02 per cent to be Rs 1,496 crore as against Rs 1,609 crore reported for Q4FY19. Subsequently, PBDT also declined by 6.13 per cent to Rs 291 crore for Q4FY20 from Rs 310 for Q4FY19. The company gained a net profit of Rs 200 crore in Q4FY20, which fell by 50.5 per cent as compared to the net profit of Rs 404 crore gained in Q4FY19. The company’s financial performance for Q4FY20 was majorly affected to COVID-19 disruptions. With resumption of business operations, a healthy growth and an upward demand trend for the company’s products is being expected. Hence, HOLD.