Shares of Marico rose nearly 4% today after the FMCG firm said the sector witnessed some improvement in demand during the December quarter, which was more visible in specific categories buoyed by the festive fervour and oncoming winter season. The India business marked a slight improvement over the preceding quarter to post a mid-single-digit volume growth, it added.
Stock of Marico gained 3.63% to reach a fresh high of Rs 524.65 on BSE. Marico shares are trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The large cap stock has gained 3.67% in one year and risen 2% since the beginning of this year.
Market cap of the firm rose to Rs 67,224 crore on BSE. The stock fell to a 52-week low of Rs 455.80 on January 27, 2022 and rose to a 52-week high of Rs 554.05 on September 23, 2022.
Total 0.54 lakh shares changed hands amounting to a turnover of Rs 2.78 crore.
Giving out details of the Q3 business performance, the FMCG firm said, “Parachute coconut oil posted low single-digit volume growth after a visible recovery in December as consumer pricing stabilised with copra prices firming up in the off-season. Going forward, we expect the brand to deliver growth in line with medium term aspiration.”
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“The Saffola franchise grew in double digits in value terms with Saffola Oils posting low teen volume growth and foods continuing its strong run towards the stated revenue aspiration. Value added hair oils had a subdued quarter, which was mainly a reflection of tepid sentiment in rural and mass personal care categories. Premium personal care, on the other hand, witnessed double-digit growth in line with sectoral trends,” added Marico in its December quarter business update.
Meanwhile, Jefferies said product price cuts may keep revenue growth tepid – pick-up in volume is key. Jefferies finds the Marico stock worth Rs 560. The stock is trading in bearish zone on the technical charts on a weekly basis. Marico stock has a one-year beta of 0.7, indicating very low volatility during the period. The relative strength index (RSI) of Marico stands at 37.9, signaling it’s neither oversold nor undersold.
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