Marico fell 1.38% to Rs 372.90 at 14:07 IST on BSE after Cabinet approved hike in minimum support price for Copra by more than Rs 2000 per quintal for 2019 season.
Meanwhile, the S&P BSE Sensex was up 33.85 points, or 0.09% to 36,110.57.On the BSE, 14,000 shares were traded in the counter so far compared with average daily volumes of 1.27 lakh shares in the past two weeks. The stock had hit a high of Rs 378.10 and a low of Rs 372.85 so far during the day. The stock hit a 52-week high of Rs 397 on 20 December 2018. The stock hit a 52-week low of Rs 284.05 on 6 February 2018.
Copra - a key raw material used to make coconut hair oil - accounts for a major proportion of Marico's input costs.
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, has given its approval for increase in the minimum support price (MSP) for fair average quality (FAQ) of "Milling Copra" has been increased to Rs 9521 per quintal for 2019 season from Rs 7511 per quintal in 2018. The MSP of "Ball Copra" has been increased to Rs 9920 per quintal for 2019 season from Rs 7750 per quintal in 2018.
The MSP of Copra is expected to ensure appropriate minimum prices to the farmers and step up investment in coconut cultivation and thereby production and productivity in the country, the Cabinet Committee on Economic Affairs (CCEA) said in a statement on 28 December 2018.
On a consolidated basis, net profit of Marico rose 17.95% to Rs 218.26 crore on 19.56% rise in net sales to Rs 1836.82 crore in Q2 September 2018 over Q2 September 2017.
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Marico is one of India's leading consumer products companies operating in the beauty and wellness space. Currently present in 25 countries across emerging markets of Asia and Africa, Marico has nurtured multiple brands in the categories of hair care, skin care, edible oils, health foods, male grooming, and fabric care.
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