In fact, with the ongoing sharp reduction in crude costs, MRCO could gain more on the gross margin front in the coming total sales) is likely to report gradual recovery in volume growth after the price reductions, recovery in Saffola (13%) witnessed in 3QFY20 is at an early stage and cannot yet be termed a turnaround. However, over the past 5 years, growth while healthy has tapered off with the companys sales at ~5%, EBITDA at 11% and PAT at The stock has corrected nearly 35% since we downgraded MRCO to Neutral at end-2QFY20 results due to the company reporting a sharp deceleration in volume growth, a trend that has well continued in 3QFY20 Trailing FY20 valuations of 32.2x FY20E EPS and FY21/FY22 valuations of 33.4x/27.5x FY22E respectively (much lower than 3-year/5-year/10-year average of 44.8x/ 42.7x/35.2x) offers potential for an upside.