Marico Share Price Jumps 6% on Strong Q1 Business Update

On July 8, Marico jumped share price by over 6% following the company's release of positive business updates for the April-June quarter, indicating that demand trends remain on a steady growth trajectory. 

At 09:53 am, Marico share price were priced at ₹654.75 on the NSE. The company's consolidated revenue saw a high-single-digit increase in Q1 of FY25, and management anticipates this upward trend to persist throughout the fiscal year. Additionally, the gross margin is expected to improve year-over-year, driven by a favorable portfolio mix. 

The domestic business also experienced a slight increase in underlying volume growth on a sequential basis. Parachute coconut oil recorded low single-digit volume growth, which management expects to accelerate throughout the rest of the fiscal year, buoyed by indications of rising offtake growth. 

On the other hand, Saffola Oils delivered mid-single-digit volume growth whereas Value Added Hair Oils (VAHO) had a soft start to the fiscal amid competitive headwinds.

According to the management's outlook, Nuvama Institutional Equities noted that Marico remains committed to achieving sustainable and profitable volume-led growth over the medium term. The management plans to accomplish this by enhancing the brand equity of its core franchises and expanding new growth drivers. 

Morgan Stanley also anticipates that the company's revenue and volume growth will improve, fueled by higher realizations. 

Furthermore, Nuvama forecasts Marico's revenue, EBITDA, and volumes to grow by 8%, 11%, and 3.5% year-over-year, respectively, in Q1 FY25. The brokerage predicts sales growth of approximately 9% for Parachute and 7% for Saffola, driven by a balanced mix of volumes and pricing. However, VAH is expected to remain muted, according to Nuvama.

The international segment is expected to perform well, growing by 11% YoY in constant currency terms. The firm also projects gross and EBITDA margins for Marico to expand by 222 basis points and 63 basis points on year, respectively, to 52.2% and 23.8%, respectively.