Orkla India shares rise as ICICI Securities initiates coverage with 'Buy' rating

Orkla India shares rise in trade.

Orkla India shares settled higher on Wednesday after ICICI Securities initiated coverage on the stock with a ‘Buy’ rating.

The stock settled at Rs 612 apiece on the NSE, up 0.39 percent from the previous close.

ICICI Securities set a price target of Rs 800, indicating an upside potential of about 30 percent from current levels.

The brokerage said Orkla India’s core strength lies in its dominant market position in southern India through its legacy brands MTR and Eastern, along with continued expansion of its distribution network.

It added that exports account for about 21 percent of the company’s revenue, making Orkla India the country’s largest branded spice exporter with presence in over 40 countries. It expects exports to grow at a compounded annual growth rate of around 12 percent during FY25 to FY28.

ICICI Securities also expects margin expansion and stronger cash flow generation on the back of operational efficiencies and an improved product mix, which could lead to a meaningful improvement in return on capital employed, reported Informist.

Earlier, global brokerage JPMorgan initiated coverage on Orkla India with an ‘Overweight’ rating and a price target of Rs 745.

JPMorgan initiates coverage on Orkla India with 'overweight', sees up to 21% upside

Orkla India reported a 7.26 percent decline in its net profit at Rs 76.68 crore in the September quarter. The company had posted a net profit of Rs 82.69 crore during the July-September period a year ago.

Its revenue from operations grew 4.92% to Rs 650.28 crore in the September quarter. It was Rs 619.76 crore in the corresponding period a year ago.

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