Marico -One-Offs Take Center Stage, Maintain ACCUMULATE :: Emkay

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Marico

One-Offs Take Center Stage, Maintain ACCUMULATE

ACCUMULATE

CMP: Rs 136                                       Target Price: Rs 142

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n     One-offs take centre stage in Q4FY11 – visually disappointing performance with revenue growth of 24% yoy to Rs7.5 bn and APAT decline of 64.8% yoy to Rs202 mn

n     Adjusting One-Offs, APAT at Rs711 mn and Ebidta margins of 14.1% meets EMKAY expectation and beats Consensus expectation

n     Moderation of volume growth in Q4FY11 at 10% versus 15% in 9MFY11 – should be viewed in light of sharp increase product prices in last 6 months

n     Retain FY13E earnings of Rs6.7/Share, CMP ignores delta to earnings on softening of edible oil and copra oil prices – Retain ACCUMULATE rating with target price of Rs142/Share