Marico Kaya Enterprises corrects on profit booking

Marico Kaya Enterprises fell 1.98% to Rs 405.05 at 14:30 IST on BSE on profit booking after the stock rose 53.23% in the preceding five trading sessions to Rs 413.25 on 18 August 2014 from a recent low of Rs 269.70 on 8 August 2014.

Meanwhile, the BSE Sensex was up 48.58 points, or 0.18%, to 26,439.54.

On BSE, so far 3.13 lakh shares were traded in the counter, compared with an average volume of 1.07 lakh shares in the past one quarter.

The stock hit a high of Rs 426 and a low of Rs 387.15 so far during the day. The stock hit a record high of Rs 432.80 on 18 August 2014. The stock hit a record low of Rs 214.40 on 3 July 2014.

The stock had outperformed the market over the past one month till 18 August 2014, rising 29.30% compared with 2.92% rise in the Sensex.

The small-cap company has an equity capital of Rs 13 crore. Face value per share is Rs 10.

Recent gains in the Marico Kaya Enterprises stock were triggered by the company's turnaround Q1 June 2014 results. On a consolidated basis, Marico Kaya Enterprises reported a net profit of Rs 0.63 crore in Q1 June 2014 compared with net loss of Rs 5.90 crore in Q1 June 2013. Revenue from operations rose 17% to Rs 75.20 crore in Q1 June 2014 over Q1 June 2013.

The result was announced after market hours on Friday, 8 August 2014. The stock rose 4.65% to Rs 282.25 on Monday, 11 August 2014.

India business reported a net revenue same store growth (SSG) at 10% and International business at 16% respectively.

Operating margins were reported at Rs 8.20 crore in Q1 June 2014 compared to loss of Rs 2.90 crore in Q1 June 2013.

Profit after tax before exceptional items for the quarter is Rs 5.40 crore in Q1 June 2014 compared to loss of Rs 5.90 crore in Q1 June 2013.

The company said it has continued to focus on its expansion strategy in India. The company currently has over 86 clinics and 3 Kaya skin bars in India and operates over 18 clinics in Middle East.

The company plans to add over 10 clinics and skin bars over two quarters. The previous year numbers were consolidated with Marico as the entire skin care business run under Kaya and its subsidiaries, was a part of Marico. The said business was demerged into Marico Kaya Enterprises with effect from 1 April 2013, the company said in a statement.

Marico Kaya Enterprises owns the specialized skin care business of Kaya (erstwhile a subsidiary of Marico). Today, Kaya delivers specialized skin care solutions in India and overseas through its range of Kaya Skin Clinics. Kaya has expanded to 86 clinics that are spread across 26 cities in India and 19 successful clinics in the Middle East.

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