Marico shares hit new life high amid quarterly update; stock up 6% - check brokerages view, target here

The shares of fast-moving consumer goods (FMCG) major Marico hit a new all-time high to Rs 590 per share on Wednesday after surging by around 6 per cent on the BSE intraday trade as the company said that it sees revenue growth in the September-ended quarter in ‘the low twenties’. 

In an exchange filing, Marico released a quarterly update on October 5, sharing the overall summary of the operating performance and demand trends witnessed in the quarter. The company said it witnessed healthy consumer sentiment across categories in its India business.

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"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.

The company further 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."

The stock has briefly traded between 520-570 per share levels underperforming the benchmark index in the last three months, as it grew over 12 per cent as compared to a 13.5 per cent rise in the S&P BSE Sensex during the same period.

Maintaining an underperform stance, CLSA says healthy topline but margin contraction to drive modest earnings growth for Marico, it sets a target of Rs 550 per share. The brokerage sees overall topline growth of 19 per cent and company is likely to register 10 per cent volume growth in India.

Core segments of coconut oils and value-added hair oils continued to post healthy trends, says CIT while maintaining a Buy call with a target of Rs 595 per share on the stock. It says smaller segments both within foods and personal care to post strong growth trends.

The counter at around 10:11 am was trading around 5 per cent higher, near life high level, at Rs 583.85 per share on the BSE, as against 0.14 per cent growth in the S&P BSE Sensex.