Shares of Marico gained over 7% on Wednesday morning after the company posted robust results in its Q2 earnings.

What Happened: Marico reported a net profit of ₹423 crore in Q2, making a 20% jump from the previous year. The Parachute oil maker's revenue went up 7.6% to ₹2,664 crore. The net profit beat the analyst estimate of ₹382 crore while revenue missed a ₹2,672 crore estimate. 

The fast-moving consumer goods (FMCG) company's revenue came in at ₹1,979 crore, increasing 8% year on year while international sales went up 6.4% to ₹685 crore. Parachute oil volume grew by 4% and contributed to 33% of the company’s domestic revenue.

See Also: Why Analysts Still Hold Out Hope For Maruti Suzuki Despite Q2 Results Raising Slow Demand Fears 

Brokerage Views: Nomura kept a "buy" call while cutting the target price to ₹760. The brokerage firm said the demand has improved for the company with weak urban demand has not affected the company as it caters to premium and mass segments.

The sharp price hikes improve the firm’s growth outlook, the brokerage said. Foods, premium personal care and digital brands show healthy growth trajectory, the research firm added. 

Jefferies maintained "buy" call while raising the target price to ₹800. The brokerage said the legacy FMCG firm is transforming into a successful consumer digital play. Q2 was in line with India’s volume growth at 5% led by rural, the research firm added.

The global brokerage firm said Marico is expected to see revenue growth accelerate to double digits with inflation coming back into the picture. The brokerage picked Marico among its top picks in the sector. 

Price Action: Shares of Marico surged 7.37% to ₹675.50 on Wednesday morning. 

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