The stock re-rated in the last 3-4 quarters owing to superior EBITDA growth. Marico was our top-pick 12 months back when copra cycle was expected to reverse. We recently downgraded Marico to NEUTRAL as we believe peak copra deflationary cycle is now behind. We expect tailwinds from deflation in input costs to moderate over the next 2 quarters. As a result, most of the positives are priced-in (30% run up in the last 12-months). The stock does not deserve a further re-rating as new launches are not moving the needle and core biz volume growth remains tepid. Marico disappointed on volume growth owing to rural slowdown. Hair oil category growth was sluggish in 2Q. Copra deflation and international performance drove healthy EBITDA growth. We recently downgraded Marico to NEUTRAL as RM tailwinds are expected to moderate and near-term positives were priced-in. We value Marico at 35x on Sep-21 EPS arriving at a TP of Rs 391.