Religare has upgraded Marico to 'Buy' from 'Hold' with target price of Rs 400 in its report.

MRCO's Q3FY15 net sales grew 20.9% YoY to Rs 14.5 billion led by a 2% YoY growth in volumes. Domestic business reported 26% growth (5% volume growth) and the international business only 4% YoY (CC growth: 6%) due to lower Egypt sales. We expect a pick-up in volume growth as the company has taken some corrective actions in Saffola and launched new products under its youth portfolio.

Commenting on the investment rationale, the stock broker said, ''We upgrade our FY16/FY17 earnings estimates by 3%/4% on higher margin assumptions, while raising our target multiple on the stock from 27x to 30x. We roll over to a Mar'16 TP of Rs 400. Upgrade to Buy.''

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