1005Maricocolcol

After touching its one-year low of ₹233.8, Marico has recovered 30 per cent.

Its ‘defensive’ tag as a supplier of essential goods during the lockdown, as well as the results of the March 2020 quarter, contributed to the rise.

Domestic volumes in the fourth quarter fell just 3 per cent, while HUL recorded a 7 per cent dip. Higher offtakes in Saffola edible oils and the foods portfolio led by Saffola Oats during the lockdown, helped. Both categories saw a 20-25 per cent volume growth during the quarter. Hair oils, hair nourishment and male grooming witnessed an 8-19 per cent drop in volumes.

Consolidated revenues at ₹1,496 crore were 7 per cent lower than a year ago, while consolidated profit after tax (excluding one-offs) came 3 per cent lower, at ₹204 crore. Operating margins expanded by 58 basis points to 18.9 per cent, due to lower ad spends as well as other cost controls. The stock now trades at 38 times its trailing 12-month earnings, and is much cheaper than HUL, Dabur and Britannia.

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