Edelweiss Securities assigns a 'buy' rating on Marico

Edelweiss Securities has assigned a 'Buy' rating on Marico with a price target of Rs 247.

Marico is likely to initiate temporary price cuts in certain SKUs of coconut oil and super premium refined edible oil. This, Edelweiss believes, will boost volumes. The strong presence of Paras in the chemist and cosmetics channel, will give Marico portfolio added distribution leverage.

Its is enthused by the forthcoming launch of Kaya skin bars in Q4FY13.

Also in the offing is a new product launch in India from its international stable in the male-grooming space.

It remains positive on Marico due to sustained focus on new growth drivers like skin care, foods categories like oats (Marico has outpaced GSK Consumer) and muesli; and youth brands like deodorants, hair gels and hair creams which are at an inflection point and will grow at a fast pace.

core business of edible oil and hair oils will continue to see robust growth.