Marico shares are trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. Marico shares are trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. Marico shares are trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. Shares of Marico Ltd zoomed over 9% today after the consumer goods firm reported a 19 per cent increase in net profit for the quarter ended March 2023. The stock zoomed 9.29% to Rs 539.5 on BSE against the previous close of Rs 493.65 on BSE. The large cap stock has gained 5.32% in one year and risen 4% since the beginning of this year. Market cap of the firm rose to Rs 68,404 crore on BSE. The stock fell to a 52-week low of Rs 462.95 on April 20, 2023 and rose to a 52-week high of Rs 554.05 on September 23, 2022. Total 2.66 lakh shares changed hands amounting to a turnover of Rs 14.19 crore. Marico shares are trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
Net profit climbed 18.67% to Rs 305 crore in the January-March quarter compared to Rs 257 crore profit in the corresponding period a year ago. In the December quarter, profit stood at Rs 333 crore, implying a fall of 8.40% on a quarter-on-quarter basis.
Amnish Aggarwal - Head of Research, Prabhudas Lilladher gave a target price of Rs 550 for the Marico stock. In an earnings review report, he said, “We are increasing FY24/25 EPS estimates by 1.9%/1.9% and rating from Hold to Accumulate on account of improved EBITDA margin expansion guidance exceeding 100bps in FY24. 9% volume growth in Parachute and 5% overall domestic volume growth and green shoots in rural demand are positives. We value Marico at 42xFY25 EPS and assign a target price of Rs 550 (523 based on 42xDec24 EPS earlier). Upgrade to Accumulate.”
YES Securities sees an upside of 15.5% to Rs 570 after Q4 earnings of Marico.
“Going ahead, expect a gradual uptick in India revenue growth for Marico as pricing interventions come into the base in 1HFY24. This along with easing input prices and favorable mix should also drive >100bps of EBITDA margin expansion. There is minor change to our FY23E/FY24E EPS, and we continue to maintain our ADD rating with an unchanged target price (TP) of Rs 570,” said the brokerage.
JM Financial revised its price target to Rs 585 against the previous Rs 575. The new price target price amounts to an upside of 18.4% over the current market price.
"We believe Marico is well-placed to drive a mid-to-high teens operating profit growth in FY24. Valuations are not as demanding with the stock now trading below its five-year average. Gross margin picture for FY24 is pretty buoyant and the company is guiding for a potential benefit of 200-250bps. While part of the GPM cushion would understandably be deployed to take A&P spends up to >9% of sales (vs 8.6% in FY23), our calculations suggest likelihood of EBITDA margin touching the 20%-mark in the coming year considering that there is no other cost-item that could possibly eat into the same," the brokerage said.
Motilal Oswal assigned a price target of Rs 590, 20% higher to the current market price.
"The outlook on gross and EBITDA margins is gradually improving. The overall consumption trends are indicating improvement and it is likely that the rural sector has bottomed out as the declining volume trend reversed. This should lead to an improvement in MRCO’s earnings growth prospects. Valuations are inexpensive at 43x/37.5x FY24/FY25 EPS. We reiterate our BUY rating on the stock," said the financial services firm.
Revenue from operations rose 3.65% to Rs 2240 crore in Q4 from Rs 2161 crore in the year ago period. Revenue in the December quarter stood at Rs 2470 crore.
EBITDA climbed 14% to Rs 393 crore in Q4 against Rs 346 crore in the corresponding quarter of the previous fiscal.
Commenting on the business outlook for FY 24, the consumer goods firm said, "In the domestic business, we will drive volume led growth and market share gains across our portfolios, aided by distribution expansion, aggressive cost controls and adequate investment in market development and brand building."
The firm expects a gradual uptick in revenue growth as pricing interventions come into the base in the first half of FY24. The International business has consistently been delivering a resilient performance despite macroeconomic challenges in some of the geographies.