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Business News/ Markets / Stock Markets/  Marico share price jumps over 8% after Q4 results; Should you buy, sell or hold the stock?
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Marico share price jumps over 8% after Q4 results; Should you buy, sell or hold the stock?

Marico's revenue from operations in Q4FY24 rose 1.69% YoY to ₹2,278 crore, with underlying volume growth of 3% in the domestic business and constant currency growth of 10% in the international business.

Marico reported a consolidated net profit of ₹320 crore in the fourth quarter of FY24, a growth of 4.9% from the year-ago period. Premium
Marico reported a consolidated net profit of 320 crore in the fourth quarter of FY24, a growth of 4.9% from the year-ago period.

Marico share price jumped over 8% in early trade on Tuesday after analysts remained bullish on the stocks post its Q4 results. Marico shares spiked as much as 8.8% to 577.80 apiece on the BSE.

The FMCG major Marico reported a consolidated net profit of 320 crore in the fourth quarter of FY24, a growth of 4.9% from the year-ago period. 

The company’s revenue from operations in Q4FY24 rose 1.69% YoY to 2,278 crore, with underlying volume growth of 3% in the domestic business and constant currency growth of 10% in the international business.

EBITDA during the quarter rose 12.5% to 442 crore, while EBITDA margin expanded by 190 basis points to 19.4%.

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Marico’s Q4FY24 revenue and EBITDA were in line with Nuvama Institutional Equities estimates. The brokerage firm believes the worst is behind given early signs of rural revival, likely good rainfall and a 6% hike in Parachute (taken in Apr-24) to pass on higher copra prices. 

“We like Marico’s focus on improving volumes over long term and market share gains, a strategy that management has adhered to for the past few years. Even as the company has had an eye on market share, it compromised on margins," Nuvama Equities said.

It revised up FY26E earnings per share (EPS) estimates by 3.4% to build in the improving margin profile and increased the target valuation from 38x PE to 40x.

Nuvama Equities upgraded Marico to ‘Buy’ from ‘Hold’ and raised Marico share price target to 640 from 574 earlier.

Foreign brokerage firm Citi has a ‘Buy’ call on Marico shares and raised the target price to 610 per share as Marico Q4 results were in-line with Citi’s estimates.

Citi believes Marico’s distribution Initiatives and pricing action is expected to drive growth and believes continued focus on NPDs and innovations should be accretive to overall growth.

At 9:20 am, Marico shares were trading 7.50% higher at 570.90 apiece on the BSE.

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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 07 May 2024, 09:21 AM IST
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