June 29, 2021 08:12 PM
Marico share hit all time high today after foreign broking house Credit Suisse raised the target price on the FMCG stock to Rs 600 from Rs 490 per share earlier. Stock of Marico rose 6.77% to reach record high of Rs 543 against previous close of Rs 508.55 on BSE.
The stock has gained after 2 days of consecutive fall, Marico share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock has gained 55.89% in one year and risen 34% in one year.
In a month, the share has climbed 14.45%. The stock closed 5.74% or Rs 29.20 higher at Rs 537.75 on BSE. Market cap of the firm rose to Rs 69,444 crore on BSE.
Total 3.48 lakh shares changed hands amounting to turnover of Rs 18.51 crore. The company needs a faster ramp-up in honey & soya chunks to achieve the revenue target.
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The share hit 52 week low of Rs 333 on September 24, 2020. The firm is among the most successful TAM expansions if the FY24 revenue target for Saffola is achieved, the brokerage said. Credit Suisse said, “In our base case, we see Saffola Foods reaching Rs 740 crore of revenue in FY24 and Rs 850 crore target in foods will be achieved via one more category entry.”
The broking firm has also brought down its FY22 EPS estimate by 2% due to near-term margin pressures, while Saffola Foods expansion can drive a re-rating in company. In Q4 of previous fiscal, the FMCG firm reported a 14.07 per cent rise in its consolidated net profit at Rs 227 crore against net profit of Rs 199 crore in the January-March quarter a year ago.
Revenue from operations of the Mumbai-based firm rose to 34.49 per cent at Rs 2,012 crore in Q4 gainst Rs 1,496 crore in the corresponding period of the previous year. Total expenses stood at Rs 1,739 crore during the March 2021 quarter, up 37.47 per cent as against Rs 1,265 crore of Q4/FY2019-20.