Marico’s Share Price Surges on Q4 Results, Sparking Positive Brokerage Calls
Marico’s share price experienced a notable increase of over 8% on May 7th, largely attributed to favorable brokerage opinions in the wake of the company’s strong Q4 performance.
In Q4FY24, Marico reported a consolidated net profit of ₹ 320 crore, representing a year-over-year growth of 4.9%. The company’s revenue from operations during Q4FY24 also exhibited an increase of 1.69% YoY to ₹ 2,278 crore, accompanied by a 12.5% jump in EBITDA to ₹ 442 crore. This resulted in an expansion of Marico’s EBITDA margin by 190 basis points, bringing it to 19.4%.
Brokerage firms, including Nuvama Institutional Equities and Citi, expressed optimism regarding Marico’s Q4 performance. Nuvama Institutional Equities affirmed its positive outlook on the company, citing Marico’s consistent focus on long-term volume growth and market share gains. Despite the company’s focus on market share, it acknowledged Marico’s willingness to compromise on margins. Subsequently, the brokerage firm revised its FY26E earnings per share (EPS) estimates upward by 3.4% to account for the improving margin profile and increased its target valuation from 38x PE to 40x. This led to an upgrade in the brokerage’s rating for Marico from ‘Hold’ to ‘Buy’, along with a revised share price target of ₹ 640 from the previous ₹ 574.
Similarly, Citi, a foreign brokerage firm, reiterated its ‘Buy’ call on Marico shares and raised its target price to ₹ 610 per share.
Marico’s impressive Q4 results and subsequent positive brokerage assessments have fueled optimism among investors, contributing to the recent surge in its share price. This positive sentiment underscores the company’s strong financial performance and the confidence of industry experts in its future prospects.
