Merry Marico: Shares End Day With Over 9% Gain; Surge In Numbers After Posting ₹320 Crore Profit

Merry Marico: Shares End Day With Over 9% Gain; Surge In Numbers After Posting ₹320 Crore Profit

The company, in its exchange filings, exhibited a 5 per cent surge in its profits in Q4.

Juviraj AnchilUpdated: Tuesday, May 07, 2024, 04:36 PM IST
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Representative Image | FPJ Librray

The Mumbai-based FMCG giant led the FMCG and consumer brand surge on Tuesday, 7 May, as major indices ended the day in red. The FMCG shares that started on a positive note ended the day with major gains in the equity market.

Marico Shares Zoom

Coming to Marico, the company, that is known for its 'Parachute Coconut oil' made tangible progress in today's trade with a mammoth 9.85 per cent surge in its share prices. With this, it took the total value of each individual share to Rs 583.5.

This surge in the sector is largely attributed to stabilising factors, including the assuaging of uncertainties in the market and resolution to supply chain issues, along with the recovery of demand and consumption. In addition, the prediction for a normal monsoon has only boosted investor confidence.

In Marico's case, there are some other factors, that appear to have played a role in its surge today. For starters, the company in its exchange filings exhibited a 5 per cent surge in its profits in Q4. These profits amount to about Rs 320 crore. The earnings season has brought about a variety of reactions from the markets, but for Marico, it is green, so far.

In addition, Marico has another target for FY27, as it intends to double its food portfolio.

In addition, Marico has another target for FY27, as it intends to double its food portfolio. |

Double Direct Distribution

In addition, the company is also actively looking to expand its business, by increasing direct distribution range over the next 3 years. In fact, according to reports, the company has committed about Rs 100 crore towards it. In the bargain, the company intends to establish as many as 1.5 million outlets compared to its current 1 million outlets by FY27.

In addition, Marico has another target for FY27, as it intends to double its food portfolio. Naturally, it also expects to increase revenue shares from the segment. And there is reason for the company to be optimistic, as just in the past four years, since FY20, it has increased its value growth from its food business by 24 per cent.

The Indices ended Tuesday, 7 May in Red, as Sensex ended the day at 73,511.85, having declined by 0.52 per cent. Meanwhile, Nifty ended the day with a 0.52 per cent, at 22,302.50 points. Nifty Bank was no exception, as it fared worse than the aforementioned two, with a drop of 1.25 per cent, ending the day with 48,285.35.

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