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

The FMCG large Marico reported a consolidated nett net of ₹320 crore successful the 4th fourth of FY24, a maturation of 4.9% from the year-ago period. 

The company’s gross from operations successful Q4FY24 roseate 1.69% YoY to ₹2,278 crore, with underlying measurement maturation of 3% successful the home concern and changeless currency maturation of 10% successful the planetary business.

EBITDA during the 4th roseate 12.5% to ₹442 crore, portion EBITDA borderline expanded by 190 ground points to 19.4%.

Marico’s Q4FY24 gross and EBITDA were successful enactment with Nuvama Institutional Equities estimates. The brokerage steadfast believes the worst is down fixed aboriginal signs of agrarian revival, apt bully rainfall and a 6% hike successful Parachute (taken successful Apr-24) to walk connected higher copra prices. 

“We similar Marico’s absorption connected improving volumes implicit agelong word and marketplace stock gains, a strategy that absorption has adhered to for the past fewer years. Even arsenic the institution has had an oculus connected marketplace share, it compromised connected margins," Nuvama Equities said.

It revised up FY26E net per stock (EPS) estimates by 3.4% to physique successful the improving borderline illustration and accrued the people valuation from 38x PE to 40x.

Nuvama Equities upgraded Marico to ‘Buy’ from ‘Hold’ and raised Marico stock terms people to ₹640 from ₹574 earlier.

Foreign brokerage steadfast Citi has a ‘Buy’ telephone connected Marico shares and raised the people terms to ₹610 per stock arsenic Marico Q4 results were in-line with Citi’s estimates.

Citi believes Marico’s organisation Initiatives and pricing enactment is expected to thrust maturation and believes continued absorption connected NPDs and innovations should beryllium accretive to wide growth.

At 9:20 am, Marico shares were trading 7.50% higher astatine ₹570.90 apiece connected the BSE.

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Disclaimer: The views and recommendations made supra are those of idiosyncratic analysts oregon broking companies, and not of Mint. We counsel investors to cheque with certified experts earlier making immoderate concern decisions.

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Published: 07 May 2024, 09:21 AM IST