Backed by 8% volume growth, Marico has posted consolidated sales of Rs17.5bn in 1QFY17. While revenue growth remained flat due to price cut in flagship brand Parachute, consolidated net profit grew 17.2% yoy to Rs2.7bn on the back of good volume growth and lower input cost. Envisaging Marico's volume growth momentum to sustain, we expect 16% CAGR in earnings through FY16-18E, at which the valuations look extremely stretched at 39.1x FY18E earnings. Hence, we revise our...