Marico shares hit record high on renewed consumption demand in September quarter

Shares of FMCG major Marico hit an all-time high today after the company said it witnessed healthy consumer sentiment across categories in its India business during the September quarter .

The stock gained 5.75% to reach a fresh high of Rs 590 on BSE. The share has gained 4.96% in the last four days. Marico share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The large cap stock has gained 56% in one year and risen 42.83% since the beginning of this year.

Market cap of the firm rose to Rs 74,390 crore on BSE. The stock fell to a 52-week low of Rs 346 on October 26, 2020.

Total 2.72 lakh shares changed hands amounting to a turnover of Rs 15.79 crore.

In its Q2 update for the operating performance and demand trends, Marico said it witnessed healthy consumer sentiment across categories in its India business.

"During the quarter, the sector witnessed improving demand trends as mobility levels increased with reducing COVID-19 infections and accelerated vaccination drives. Discretionary categories and out-of-home consumption also visibly picked up," the company said.

"Revenue growth in the quarter was in the low twenties, with volume growth close to double-digits on a 2-year CAGR (compound annual growth rate) basis."

While the 'Parachute' coconut oil delivered in line with medium-term aspirations, the company said its value-added hair oils posted double-digit volume growth.

"Within the Saffola franchise, Saffola edible oils had a muted quarter, largely due to volatility in edible oil prices leading to trade destocking and partly owing to lower in-home consumption," it added.

Foods business continued to "grow smartly" and remained on course to clock Rs 500 crore in revenues this year, said Marico.

Premium personal care portfolios grew "handsomely, albeit on a low base", it said adding, "the digital-first brands, Beardo and Just Herbs, performed in line with expectations".