- Marico shares surged by over 8% in early trading on Tuesday, following the company’s Q4 results.
- The FMCG giant reported a consolidated net profit of ₹320 crore in Q4FY24, marking a 4.9% increase from the same period last year.
- Analysts remain bullish on Marico stocks, with Nuvama Equities upgrading Marico to ‘Buy’ from ‘Hold’ and raising the share price target to ₹640 from ₹574.
Marico shares see a significant surge following positive Q4 results, with analysts predicting a promising future for the FMCG giant.
Marico’s Q4 Results Trigger Stock Surge
Marico, a major player in the FMCG sector, saw its shares spike by as much as 8.8% to ₹577.80 apiece on the BSE in early trade on Tuesday. This surge came in the wake of the company’s Q4 results, which showed a consolidated net profit of ₹320 crore, a growth of 4.9% from the year-ago period. The company’s revenue from operations in Q4FY24 also rose by 1.69% YoY to ₹2,278 crore.
Analysts Remain Bullish on Marico
Despite the challenges faced by the FMCG sector, analysts remain optimistic about Marico’s future. Nuvama Institutional Equities, for instance, believes that the worst is over for Marico, citing early signs of rural revival and a likely good rainfall. The brokerage firm has also noted Marico’s focus on improving volumes and gaining market share, a strategy that has been consistent over the past few years. As a result, Nuvama Equities has upgraded Marico to ‘Buy’ from ‘Hold’ and raised the share price target to ₹640 from ₹574.
Positive Outlook for Marico
Other brokerage firms also share a positive outlook for Marico. Citi, a foreign brokerage firm, has a ‘Buy’ call on Marico shares and has raised the target price to ₹610 per share. Citi’s optimism stems from Marico’s Q4 results, which were in line with the firm’s estimates. Citi believes that Marico’s distribution initiatives and pricing action will drive growth, and that the company’s continued focus on new product developments and innovations will be accretive to overall growth.
Conclusion
Marico’s Q4 results have sparked a surge in its share prices, with analysts predicting a bright future for the FMCG giant. The company’s focus on volume growth, market share gains, and new product developments, coupled with positive external factors such as a likely good rainfall, are expected to drive its growth in the coming quarters.
