To have a wait and watch approach on Marico: Avinnash Gorakssakar

In a chat with ET Now, Avinnash Gorakssakar of Moneyinvestments.in shares his views on Marico.

ET Now: What is the call really on Marico?

Avinnash Gorakssakar: My guess is I would prefer to have a wait and watch approach because clearly for a loss making company I would be surprised even if markets do not know what has been the kind of traction on the earnings as well as on the queerly numbers. Clearly Mr Mariwala has also given an indication that they could also at an IPO or maybe a debt raising option. So unless one gets a clear sense on how the capital structure of this company is evolved and what is the kind of growth expectations going forward because this business definitely will operate in a fast trajectory but the kind of competition also which is also prevalent in the market one has to see.

So clearly once it gets listed, one would get better clarity but at least from the point of Marico, it is a good decision because the loss making company business is now shifted to a separate company so to that extent, earnings for Marico would obviously get enhanced so it is obviously positive in the short term for Marico but in the longer term, one would like to see how the new company also perform.