Marico share price jumped over 4 percent in the morning session on January 31 after the company declared its December quarter earnings.
The FMCG major on January 28 announced its results for the third quarter of financial year 2022-23, with the company posting a revenue of Rs 2,407 crore, marking a 13.4 percent year-on-year surge. The profit after tax (PAT) in the same period increased 1.6 percent YoY to Rs 317 crore. Sequentially, the net profit was nearly the same.
Revenue from operations was slightly lower as compared to Q2 when it was Rs 2,419 crore. Ebitda for Q3 came in at Rs 431 crore, which was 4.4 percent higher than Rs 413 crore recorded in the year-ago period.
Marico, in a press release attached with its unaudited quarterly results, said its board has declared an interim dividend of Rs 6.25 per equity share of Re 1 each at its meeting held on January 28, 2022.
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The stock was trading at Rs 489.40, up Rs 18.40, or 3.91 percent, at 10:01 hours on BSE. It has touched an intraday high of Rs 494.75 and an intraday low of Rs 476.
Global research firm Morgan Stanley has maintained its overweight call on the stock but has cut target to Rs 651 from Rs 670 per share. The brokerage firm is of the view that Q3 earnings were a tad ahead of estimates, but marginally below consensus. Medium-term strategy of strengthening core business and building non-core is on track, it said.
UBS has an outperform rating with target at Rs 660 per share. "We broadly maintain FY22/23/24 EPS (earnings per share) post largely in-line Q3. The company expects improvement in volume growth as well as gross margin in Q4. With copra (a key constituent for Marico as it accounts for majority of its raw material requirements) expected to remain benign, margin tailwinds should sustain in FY23," it added.
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