TODAY’S STOCK PICK
For FY20, Marico’s management expects 10% volume growth in India business, double-digit CC sales growth in international business, and over 18% EBITDA margin. Marico is emerging as an interesting play on rural growth. Three factors underpin our confidence on Marico’s earning prospects: (i) likely benign RM environment over the next 18-24 months (ii) strong volumes performance of Parachute and healthy growth prospects in the VAHO segment and (iii) good traction being witnessed on new product development.
— Motilal Oswal Securities Limited