Shares of Marico, the Indian consumer goods company, rallied 9.3 percent on Monday, May 08, after the company reported a significant rise in its consolidated net profit for the fourth quarter ended March 2023.
The company's net profit increased by 18.68% to ₹305 crore against ₹257 crore last year, driven by single-digit volume growth and moderation in key commodity prices.
During Monday’s trade, the stock opened at a price of Rs. 511 per share against the previous close of Rs. 493.60 and grew further during the early trading session to touch an intraday high of Rs. 539.80. It was trading at ₹528.10, up by 6.99 percent, at 11:20 a.m. on the NSE.
The stock touched a 52-week high of Rs. 554.35 on September 23, 2022, and a 52-week low of Rs. 462.70 on April 20, 2023, indicating that at the current level, the stock is trading over 14 percent above its 52-week low and just 4.7 percent below its 52-week high.
The stock has grown over 10 percent in the last one month. Moreover, in the past one year, it has increased by nearly 8 percent. The stock yielded a positive return of almost 71 percent in the last five years.
The company's revenue from operations showed a year-on-year growth of 3.6 percent, amounting to ₹2,240 crore. Meanwhile, the earnings before interest, taxes, depreciation, and amortisation increased by 13.6 percent YoY, reaching ₹393 crore.
This resulted in an expansion of margins from 16 percent in the year-ago period to 17.5 percent.
During the quarter, the prospects for a sustained recovery in consumption trends strengthened as the sector recorded low single-digit volume growth in Q4 after five consecutive quarters of volume decline.
"From a category perspective, Packaged Foods, which have been relatively resilient through the year, continued to drive growth for the sector. We expect the gradual pickup in overall consumption should accelerate the pace of growth in Packaged Foods," the company stated through an official filing.
In other news, the company made an announcement on Friday stating that Saugata Gupta has been re-appointed as the Managing Director and Chief Executive Officer for another two-year term.
Marico Limited is a consumer products company operating in the health, beauty and wellness space. The company offers various brands in the categories of hair care, skin care, edible oils, healthy foods, hygiene, male grooming, and fabric care. It operates across Bangladesh, Singapore, Egypt, Malaysia, Middle East, Nepal, Malaysia and South Africa.
According to a MintGenie poll, 38 analysts on an average have a ‘BUY’ call on the stock.
