Marico jumps up

Marico is showing some immense amount of activity today; volumes are up almost 27x and the stock is currently among the top three gainers on the BSE; opening 5.5% higher atvRs.559.35, the stock rose to an intraday high at Rs.582.75, up 10%. Its 52-week high is at Rs.595.

The market is enthused with the company’s Q4FY24 earnings published yesterday and post that most brokerage houses have gone gung-ho, giving higher targets and ‘buy’ calls.

The company ended Q4FY24 with a 2% (YoY) jump in revenue from operations at Rs.2278 crore. EBITDA came in at Rs.442 crore, up 12% while margins rose from 17.5% to 19.4%. Its PAT for the quarter was at Rs,.318 crore, up 5%.

The company ended FY24 with a 1% drop in revenue at Rs.9653 crore but PAT was up 14% at Rs.1481 crore.

Looking ahead, the company expects its Foods portfolio to be 2x of current scale in FY27 and is poised for 20%+ CAGR after successful initiatives towards refinements in supply chain and GTM during FY24. It aims to have a double digit EBITDA in digital-first brands in FY27. In FY25, it expects domestic revenue growth to trend higher with pricing & volume growth gradually picking up while it will continue with its aggressive diversification. And on the international front, Bangladesh is to continue growing in double digits; MENA & South Africa would be scaling up.