Shares of Marico were rising on Monday after the company posted an in-line Q1 business update.

What Happened: Marico said the domestic business would post a modest uptick in volume growth for the quarter ended June, compared with the previous quarter. Its international business delivered double-digit constant currency growth. 

The company's consolidated revenue grew in the high single-digit and expects gross margin to expand year on year due to a favourable portfolio mix. Its operating profit is expected to grow slightly ahead of revenue, which will also lead to a marginal increase in operating margin, the fast-moving consumer goods firm said.   

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Brokerage View: JP Morgan maintained "overweight" call on the scrip with a target price of ₹660. The brokerage said the company's Q1 revenue is ahead of expectations and is on track to reach double-digit growth in the second half of the financial year.

It expects the pricing growth to turn more favourable in the coming quarters as edible oil prices normalise. The value-added hair oil's growth is expected to turn positive in the second quarter, according to the research firm.

Morgan Stanley maintained "equal-weight" with a target price of ₹566. Q1 performance was broadly in line with the estimates, the brokerage firm said. It added that demand trends continue to gradually improve and backs management expectations for revenue growth to improve led by domestic volume growth and higher realisations. 

Price Action: Shares of Marico shot up 5.09% to ₹646.65 on Monday morning. 

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