It had posted a net profit of Rs 360 crore in the July-September quarter a year ago.
Its consolidated revenue from operations was up 7.6% to Rs 2,664 crore during the quarter under review. It was at Rs 2,476 crore a year ago.
Additionally, Marico’s total income, which includes other income, was up 9.22% to Rs 2,746 crore.
Post the Q2 earnings, here is what the analysts across various brokerages commented on the company’s performance:
Nomura: Buy | Target price: Rs 760
Nomura has maintained a buy rating on Marico and cut the target price to Rs 760 from Rs 780.Nomura stated Marico’s results as a silver lining amidst a gloomy quarter as the company’s demand improved and there was no impact from weakness in urban areas as it caters to premium and mass. Sharp price hikes improve the growth outlook. Foods, Premium Personal Care and Digital brands showed a healthy growth trajectory.
Jefferies: Buy | Target price: Rs 800
Jefferies maintained a buy view on Marico and hiked the target price to Rs 800 from Rs 780.
The legacy FMCG is transforming into a successful consumer digital play. Q2 was inline with the India volume growth at 5%, led by the rural segment. With inflation coming back, Marico is set to see revenue growth accelerating to double digits. The management outlook on growth appeared to be positive for coming quarters as well as the medium-term. Marico is back in Jefferies’ top picks.
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HDFC Securities: Buy | Target price: Rs 760
HDFC Securities maintained its buy rating on the stock while cutting the target price to Rs 760 from an earlier Rs 775.
The target price and rating have been assigned given the expected revenue/EBITDA/PAT CAGR of 10%/11%/11% over FY24-27. This outlook is supported by the strong performance of the domestic business, significant improvement in the profitability of the fast-growing foods and digital-first business (20% of domestic sales) and a sustained double-digit constant currency revenue growth momentum in the international business as the currency headwinds subside.
However, in 2HFY25, the operating margin will likely remain under pressure due to higher raw material costs, particularly for copra and the edible oil basket.
Nuvama: Buy | Target price: Rs 740
Nuvama has retained it buy call on Marico with a target price of Rs 740, down from Rs 780.
Marico’s revenue and EBITDA were exactly in line with the estimates. Factoring in higher copra and edible oil prices, Nuvama has cut the FY25E/26E/27E EPS by 4.2%/5.1%/4%.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)