Marico shares jump 6 per cent after strong second quarter results
The FMCG major reported a 31 per cent rise in net profit and raised its growth guidance for the current financial year.
Marico shares rose 6 per cent to Rs 845 on the NSE on Tuesday after the company reported a 31 per cent year-on-year increase in consolidated net profit to Rs 550 crore for the July-September quarter of FY27, according to The Economic Times.
The company's revenue from operations grew 12 per cent to Rs 3,897 crore during the same period, up from Rs 3,450 crore in the corresponding quarter of the previous year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 27 per cent to Rs 709 crore, while the EBITDA margin expanded by 200 basis points to 18.2 per cent.
Managing director and chief executive officer Saugata Gupta said the improved outlook was driven by a favourable product portfolio mix, better profitability in new growth engines, and softer copra prices. Marico expects to achieve mid-twenties EBITDA growth in FY27 and aims to exceed the Rs 15,000 crore revenue mark.
The company's India business saw 10 per cent underlying volume growth, while the international business reported 13 per cent constant currency growth. The foods portfolio grew by 45 per cent during the quarter.
Following the results, Jefferies raised its target price for Marico to Rs 1,035 from Rs 1,000, maintaining a 'Buy' rating. Systematix Institutional Equities also maintained a 'Buy' rating with a target of Rs 960, while Dolat Capital upgraded its rating to 'Buy' with a target of Rs 1,025.