Marico share price climbs 10% after Q4 results. Should you buy, sell or hold?

Brokerages share a mixed view on the stock post the March quarter results. Here’s what they have to say:

Motilal Oswal

says that the improvement in rural market, market share gain, accelerated growth in foods and premium personal care, healthy growth in international business, and the normalization of price cuts should help MRCO deliver better revenue in FY25-26E. They added that has also been sustaining .

They have a ‘buy’ rating maintained on the stock with a target price of Rs 625.

Investec

Marico’s operating performance was broadly in line with Investec’s estimates. Diversification of India portfolio, return of pricing and recovering international add to the brokerage firm’s confidence in the company. While near-term margins seem unlikely to expand, Investec believes there are sufficient triggers for longer-term margin improvement.

upgraded the stock from ‘hold’ to ‘buy’ with a target price of Rs 616.

Kotak Institutional Equities

“Marico’s operating performance was broadly in line with its quarter-end update. Consolidated revenues, EBITDA and net profit grew by 1.7%, 12.5%, and 5.3%,” states a report by Kotak Equities.

We note that the guidance assumes some improvement in the operating environment for the core portfolio, acceleration in organic growth of Saffola foods, recovery in Bangladesh, benefits of direct reach expansion in India and steady EBITDA margin after factoring in investments, the report further mentioned.

Kotak maintained its ‘reduce’ rating while decreasing the target price to Rs 545.

JM Financial

Marico’s Q4 earnings were in line with JM’s expectations. “The price correction-led drag on topline is now behind with price hikes in Parachute, focus on value growth in VAHO & anniversarisation of price cuts in Saffola, which should drive double digit sales growth (ahead of vol growth). On the margin front, however, further expansion is unlikely with key commodities inching up, thereby resulting in low double-digit EBITDA growth for FY25E,” state JM Financial.

has maintained a ‘buy’ rating for the stock, however, has decreased the target to Rs 600 (from an earlier Rs 615).

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)