Marico Ltd

Strong growth

Current Price Rs. 107
Target Price Rs. 121
– Buy

Marico Ltd continues to dominate the branded coconut oil market, worth approximately Rs1,500 crore, with its flagship brand Parachute and the refined safflower oil market, including Saffola and Sweekar.

Supported by a strong brand portfolio, Marico has witnessed a healthy double-digit revenue growth for 16 consecutive quarters.

The Kaya venture is expected to break even by the end of the year and clock in approximately Rs300 crore revenue by FY2012. The management expects robust growth in domestic as well as international business to drive consolidated revenues by approximately 16% in FY2010.

We expect Marico to witness 15.4% compounded annual growth rate in revenues and 18.9% in profit over FY2009-12.

—India Infoline