Analyst View: Accumulate Marico: Angel Broking
Angel Broking has suggested Accumulate Call for FMCG major Marico. The company has a market capital of Rs 7988 crore. With a 52-week high of Rs 136, the stock is trading near its yearly highs.
Angel Broking has given the volume growth in hair oil and cooking oil as a major driving factor for the strong future growth at Marico.
The coconut oil brand of Marico, Parachute is expected to grow at 7-8% in terms of volume. As the price has been strong in the recent times, the company is expected to register better margins.
The company management also expects to maintain a strong growth of 14-15% in volume in cooking oil brand Saffola. The brand already enjoys a decent market share in the premium segment.
The company is also expecting growth coming from recently launched products, which include Saffola Oats and Saffola Arise.
Kaya Skin Care is also expected to show bigger percentage in the profits in future quarters. The company has recently acquired Derma-Rx.
At current market price, the stock is good long term bet.