The shares of this leading FMCG company made an intraday high of 4% on Monday’s trading session after the company announced its financial results and the management made certain commentary on its future. In this article, we will look at this announcement.
With a market capitalization of Rs 93,964 crores, the shares of Marico Ltd are currently trading at Rs 725 per share, down by 1.5% from its 52-week high of Rs 737 per share. In the last one year, the stock has delivered a superior return of 36.79 percent.
Financial Highlights
Marico Ltd reported a consolidated revenue of Rs 10,831 crores in FY25, up by 12.2 percent from its FY24 revenue of Rs 9,653 crores. It increased by 19.84 percent YoY from 2,278 crores in Q4 FY24 to 2,730 crores in Q4 FY25. However, on a QoQ basis, it declined by 2.29 percent from 2,794 crores in Q3 FY25 to 2,730 crores in Q4 FY25.
It posted a net profit of Rs 1,658 crores in FY25, up by 10.39 percent, from its FY24 net profit of Rs 1,502 crores. It increased by 7.8 percent YoY from 320 crores in Q4 FY24 to 345 crores in Q4 FY25. However, on a QoQ basis, it declined by 15 percent from 406 crores in Q3 FY25 to 345 crores in Q4 FY25. In Q4 FY25, the company reported a volume growth of 7 percent, higher than the expectations of a 5% to 6% growth from last year.
The company has recommended a final dividend of Rs 7 per share, and the record date has been set as Aug. 1, and the dividend will be paid on or before Sept. 7, subject to shareholder approval at the company’s annual general meeting. Together with the interim dividend of Rs 3.50 per share declared on January 31, 2025, the total dividend would be Rs 10.50 per share.
Marico expects to maintain double-digit revenue growth in FY26 and aims for double-digit growth in operating profit as well. It also projects annualized volume growth to exceed 5 percent during the year.
Brokerage Comments
Jefferies has maintained its buy rating with a target price of Rs 800, signalling an upside of Rs 10.7%. It emphasized that robust 7% volume growth in India and good international constant currency (CC) growth are continuing. However, margin pressure comes from gross margin compression and higher advertising and promotion (A&P) spending. But the outlook for the core and growth portfolios is reasonably positive.
Emkay Global has maintained its buy rating with a target price of Rs 810, signalling an upside of Rs 11%. It anticipates double-digit growth in India business, with more volume-driven than price. New initiatives are being considered as value-accretive. As deflation on edible oil and coconut prices are managed better, the core portfolio’s margins are expected to improve from H2FY26E, while new initiatives’ margin impact is expected to decline progressively.
Written by Satyajeet Mukherjee
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
