Wednesday 12 November 2008

Buy Marico, target Rs 64: KRChoksey

KRChoksey has recommended a buy rating on Marico with target of Rs 64 in its report on October 22, 2008. "Marico’s net sales increased 30.1% Y-o-Y to Rs 603.5 crore in Q2FY09 as against Rs 463.8 crore during Q2Y08. EBITDA of the company registered a growth of 14.1% Y-o-Y to 73.9 crore & PAT rose by 11.6% Y-o-Y to Rs 47.1 crore. The second half of FY09 is expected to present significant challenges in the domestic consumer products business, though the long term fundamentals of the company remains strong. At CMP of Rs 53.3, the stock is trading at 18.5x on FY09E EPS of Rs 2.8. We recommend a BUY on this stock with target price of Rs 64.0, which represents an upside potential of 20.0%," says KRChoksey's research report.

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Source: Moneycontrol

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