Marico’s shares gain on Q2 results; Should you buy, hold or sell the stock-

Marico’s shares gain on Q2 results; Should you buy, hold or sell the stock?

Marico’s stock price surged 1.30% to Rs 539.10, a day after the FMCG major posted Q2FY24 profit at Rs 360 crore, up 17.3% in comparison to Rs 307 crore during the second quarter of FY23, surpassing estimates. It posted revenue from operations at Rs 2,476 crore, down 0.8% on-year, with underlying volume growth of 3% in the domestic business and constant currency growth of 13% in the international business. Marico’s revenue during the second quarter of FY23 was at Rs 2,496 crore.

Marico’s share price gained 0.67% in the last five days, while it dropped 6.09% in the last one month. The share price, however, has gained 8.20% in the last six months and nearly 7% year-to-date.

earlier) and 200bps+ Ebitda margin expansion in FY24 (100-150bps earlier). We slightly moderate estimates on lower revenues but retain ‘Buy’ with an unchanged Target Price of Rs 660.”

HDFC Securities: Add – Target Price: 650

“We continue to build in gradual recovery in volumes/value in H2FY24. However, healthy EBITDA performance is expected to be sustained. Given improving demand trends and input cost tailwinds, management remains upbeat about 350-400bps GM and >200bps EBITDAM expansion in FY24 (in-line). We model a 12% EBITDA CAGR during FY23-26E. We prefer Marico, given its thrust to drive growth in its core brands, initiatives to drive D2C/foods, and the margin upcycle. We value the stock at 45x on Sep-25 EPS to derive a target price of Rs 650. Maintain ‘Add’.”

Prabhudas Lilladher: Hold – Target Price: 556

“Innovation funnel remains strong as Marico has launched hair and Care Shampoo, Parachute Advanced oil with superfoods, Saffola peanut butter and Mayonnaise, Livon Curl cream, Style pro and Parachute Body wash. Strong innovations, success in foods and B2C acquisitions will enable the company achieve the targeted 20% of sales from these in FY24. We believe EBIDTA margins will peak out in FY24 which will curtail Sales/PAT CAGR to 9.2%/10.7% over FY23-26. We value MRCO at 43xSept25 EPS and assign a Target Price of Rs 556 (Rs 581 earlier based on 43xJune’25 EPS). Although MRCO has corrected 11% from peak, it lacks near term triggers. Retain ‘Hold’.”

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