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Marico slumps 9% in morning trade on bourses

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Press Trust of India Mumbai
Last Updated : Jan 21 2013 | 12:12 AM IST

Shares of consumer products-maker Marico tumbled by nearly 9% in morning trade on the bourses today after the company hinted at the possibility of its profit falling short of market expectations in "the next couple of quarters".

The company opened on a weak note and then fell 8.54% to an early low of Rs 145.55 on the Bombay Stock Exchange. In a similar ashion, it lost 8.80% to Rs 145.50 on the National Stock Exchange.

The stock later gained some strength and was trading at Rs 146.60 on the BSE -- down 7.89% -- and at Rs 146 on the NSE, down 8.46%, at 11:07 am.

In a regulatory filing yesterday, Marico said the profit after tax (PAT) expectations of financial community members, especially stock market participants, from the company were "somewhat excessive".

"... There is a possibility of our Profit after Tax for the next couple of quarters falling short of the current expectations of market participants, particularly our investors and stock analysts," Marico said, citing factors such as high inflation and uncertainty in the global economic scenario.

Market experts said the fall in the stock was largely on account of yesterday's announcement by the company, as Marico has outperformed the broader market so far this year.

Marico has gained 32.30% so far this year (till September 14), even though the Sensex has lost 18.52%.

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First Published: Sep 15 2011 | 10:13 AM IST

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