Goldman Sachs has initiated coverage on Marico (MRCO.BO) with a Buy rating and a 12-month target price of Rs124. Marico appears well placed to deliver robust top-line CAGR of 16% in FY09-FY12E, backed by its flagship brands, Parachute and Saffola. Moreover, we expect its international business to provide a strong boost with a sales CAGR of about 25% in FY09-FY12E.
12-m TP of Rs124 is based on 25X FY11E EPS
