Marico needs a parachute!
Marico, which had closed at Rs.260.80 on Friday, opened lower today at Rs.252.50 and went down further to an intraday low at Rs.251.25. It recovered from that low and to rise to Rs.264 and is currently at Rs.258 levels.
Its 52-week high and low stands at Rs.403.70 and Rs.234.50 respectively.
The company’s earnings in Q3FY20 were itself bad on account of lower domestic demand. 70% of its revenue from the domestic market comes from its edible oil business and that itself took a hit. For overall 9MFY20, the benign copra prices helped but that will now change in Q4 earnings.
The Govt, on Friday increased the MSP of copra, the key raw material for Marico to Rs.9960/quintal to Rs.9521/quintal. And this is expected to hit the margins of the company which is already grappling with low demand.