Shares of Marico Limited hit an all-time high of Rs 736 in Monday's trade as on strong Q4 results and volume growth, and brokerages' upgrades target the Price.
Marico Q4 results
Net profit of a fast-moving consumer goods company Marico rises 8.5% as compared to last year to Rs 343 crore, which is better than what the Dalal Street estimated. And company's net income rises 20% YOY to Rs 2,730 crore, and Marico's indian business saw a surge of 42% and volume growth of 7% YOY.
EBITDA margin of Marico contracted by 270 bps, and gross margin contracted by 300 bps
Target Price Upgrade
Brokerage firm Ambit Capital raised the target price of Marico to Rs 766 per share from Rs 736 per share, and the brokerage firm mentioned that revenue growth is ahead of what the Street estimated.
Jefferies also hiked the target price of Marico to Rs 800 from Rs 760 earlier on strong volume growth and revenue growth.
Emkey Global also raised the target price of Marico to Rs 810 from Rs 710 earlier.
Nuvama institutional equities raised the target price of Marico to Rs 815 from Rs 785 earlier.
Motila Oswal also raised the target price to Rs 800 per share.
What exception in marico results?
Marico Limited posted net profit growth of 8%. If we compare with other FMCG giants like HUL and Nestle, then we can see HUL's net profit down by 3.7%, and Nestle's net profit is also down by 6.5%. This is the first advantage of Marico Limited.
Revenue growth of Marico Limited has increased by 20% YOY, whereas HUL's net revenue growth is only 2,4 and Nestle's revenue growth is only 4.4%. This is the second advantage of Marico Limited.
Most Important thing is volume growth. Volume growth of Marico Limited stood at 7%, which is the highest in the industry, and if we compare with HUL and Nestle, then volume growth of HUL is around 2-2.3%, and Nestle's volume growth is only 2%, and this is the biggest advantage of Marico Limited.
Due to all these points, there's massive buying in Marico shares, and shares hit an all-time high of Rs 736, whereas HUL and Nestle are trading at 10-15% down from their all-time high.
Disclaimer: this article is only for educational and informational purposes
