Marico says its domestic business has posted a modest uptick in underlying volume growth sequentially in Q1.
Marico says its consolidated revenue likely grew in high single digits in Q1, despite the residual impact of pricing cuts in its Saffola oils portfolio and currency headwinds in overseas markets.
Marico expects consolidated revenue growth to trend upwards during the year, on the back of an improving trajectory in domestic volume growth and higher realisations due to the favourable pricing cycle in key domestic portfolios.
Goldman Sachs has maintained its 'buy' rating on Marico and raised its target to Rs 660 from Rs 610.
Citi has maintained a 'buy' rating and raised its target for the stock by Rs 90 to Rs 700.
Macquarie has kept its 'outperform' call on Marico and revised its target to Rs 660 from Rs 615 per share.
Morgan Stanley has continued with its 'equal-weight' rating on Marico with a target of Rs 566.
According to the brokerage, while demand trends for Marico continue to improve gradually, the FMCG firm's management expects revenue growth to improve led by domestic volume growth and better realisations.
The brokerage's target for the FMCG stock remains at Rs 660. Marico's Q1 revenue is ahead of expectations, and on track to reach double-digit growth in H2, according to JPMorgan.