Marico Ltd (NSE: MARICO): After the correction in the stock market, numerous investors are planning to invest in stocks with affordable prices.
Investors are watching the price of shares in Marico Ltd, a midcap company in the FMCG sector. On Tuesday, the share price was at the level of the price of Rs 590.70.
The market capitalization for this company is Rs 76.40 thousand crores. The stock has fallen 10 percent in the last month.
The brokerage firm Geojit has suggested an accumulation rating for the midcap company as well as the Nifty Midcap 50 component of the index Marico Limited.
The brokerage firm claimed that the company did well during the quarter, which was primarily supported by strong volume growth in the rural market of the country, and that further growth is expected in the coming quarter.
Based in Mumbai, Marico Limited is a leading Indian FMCG company that exports its goods to more than 25 countries.
The range of products provided by the company includes brands such as Parachute, Saffola, and Livon.
Marico expects double-digit growth of the international and domestic markets during the second quarter of FY25.
This suggests improved performance in the near future. The price increase is likely to be greater due to the increased input costs, which could reduce the margins of its business.
In addition, the brokerage stated that the uncertainty surrounding its international operations (in Bangladesh) is expected to affect its overall performance in the near term.
Parachute Q2 Revenue Up 10 Percent
In the course of the conference, the management of the company stated they Parachute Rigids demonstrated volume growth of 4 percent.
Parachute Rigids recorded a 10 percent growth in revenue, aided by price adjustments at the start of the calendar year.
Parachute alone made up 33 percent of revenues generated in the market in the country. Beardo Plix Plix Beardo is predicted to record double-digit EBITDA margins for FY25.
Marico’s Project
Project Setu, an initiative by the company to increase the reach of its direct outlets, which was previously 1 million to 1.5 million by FY27, was expanded to four states, bringing the total number of states to 10.
The company’s management stated that the initiative has grown in popularity as the state-level exhibits are going smoothly with the help of a solid government system.
With the rising inflation rate and high import taxes, the management believes that prices for vegetable oils will increase in the second quarter of FY25.
The company is expecting the food portfolio to grow by more than double from the current levels by FY27.
Marico Share Price Target
Geojit is upgrading the shares to Accumulate and has revised the price target to Rs 678.
Marico Dividend Stock
According to exchange records, Marico paid one dividend to its investors thus to 2024.
The company in March paid an amount of 650 percent or an amount of Rs 6.50 on each share that had an amount of 1 rupee.
In 2023-2022, the firm paid dividends of Rs 7.50 and Rs 6.25 per share to its shareholders.
Marico’s share has risen 11.50 percent over the past year and has gained 21 percent over the last two years.
The 52-week price range for the price is between Rs 719.80 and Rs 486.75.
The market capitalization for Marico Limited is Rs 76,521.96 crore.
Quick Fact
Table for Marico
| Company name | Marico |
|---|---|
| Market cap | ₹76,400 crores |
| Sector | FMCG |
| Location | Mumbai |
| Export countries | 25+ |
| Key brands | Parachute, Saffola, Livon |
| Revenue growth (Parachute Q2) | 10% |
| Volume growth (Parachute Q2) | 4% |
| Parachute revenue share (domestic) | 33% |
| EBITDA margin (Beardo, FY25) | Double-digit expected |
| Initiative | Project Setu |
| Direct outlet expansion (Project Setu) | From 1M to 1.5M by FY27 |
| States covered (Project Setu) | 10 |
| Food portfolio growth (expected by FY27) | More than double |
| Input cost concern | Vegetable oil price increase |
| Dividend in March 2024 | ₹6.50 per share |
| Previous dividends (2022-2023) | ₹7.50, ₹6.25 per share |
| Share performance (1 year) | 11.50% rise |
| Share performance (2 years) | 21% rise |
| Possible target price | ₹678 |
| Price drop (last month) | 10% |
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