Marico’s stock price surged by nearly 6%, hitting a 52-week high, following an upgrade from ICICI Securities. The brokerage firm shifted its stance on Marico from “add” to “buy”, predicting a potential 19% rise from its closing price of ₹562 last Friday. Opening at ₹570.05, the stock reached an intraday peak of ₹595.
What Happened? After discussions with Marico’s MD & CEO, Saugata Gupta, ICICI Securities highlighted the company’s ambition for a medium-term volume growth of around 8%. The brokerage appreciated Marico’s efforts to accelerate expansion while retaining its market position. They anticipate growth in Marico’s Parachute Coconut Oil sales, driven by stable copra prices and a rebound in rural demand.
The report also mentioned a stabilized competition in the value-added hair oil sector. With Saffola expecting consistent growth in edible oil and the company’s push towards premium products, the value-added hair oil segment might see a steady rise in value.
ICICI Securities projects that Marico’s food segment revenue will soon outpace its edible oil sector. This shift could reduce the volatility in operating margins. The brokerage maintained its earnings predictions for FY24-25 and set a revised target price of ₹670 for Marico’s stock.
Price Action: Marico Ltd. shares were trading 2.49% at ₹575.80, shortly before market close on Tuesday.
Get all the latest Share Market trends and news to set you up for the week ahead.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.