Marico: Management's positive commentary offers some comfort, say analysts

Hair oil volumes return to pre-Covid levels, but staying there won't be easy

Marico’s performance for the quarter ended June 30, 2020 (Q1), announced during market hours on Monday, came in as a surprise. Besides beating the Street’s expectations, the hair-to-edible oil major's Ebitda margin was the highest in nearly 12 years, led by aggressive cost control.

Yet, the Street wasn't convinced, given the negative stock reaction to the results amid worries over growth in the hair oil category and deceleration in Saffola edible oil's volume growth. However, analysts say,  positive management commentary offers comfort.

According to Marico's management,