Marico shares gain post-in-line Q3 results; is it the right time to invest?

Marico share price NSE, Marico share price BSE, Marico share price target 2024: Marico shares registered mild gains on Tuesday, January 30, a day after the Mumbai-headquartered FMCG company posted a set of Q3 results that were in line with analysts' estimates. The stock gained as much as 1.3 per cent on the bourses in morning deals, rising by as much as Rs 6.9 to Rs 523.4 apiece on BSE and by Rs 6.6 to Rs 523.2 apiece on NSE and continuing a winning run for a second straight session.

Marico Q3 results

After market hours on Monday, the homegrown FMCG major reported a 15.9 per cent increase in consolidated net profit to Rs 386 crore for the fiscal third quarter. Howver, the company registered a 1.9 per cent decline in quarterly revenue from operations to Rs 2,422 crore. 

According to Zee Business research, Marico's quarterly net profit was estimated at Rs 362 crore and revenue at Rs 2,465.

The FMCG company's total expenses for the October-December period declined 4.7 per cent to Rs 1,970 crore.

Marico share price target 2024: Is it a good time to invest? 

Jefferies maintained a 'buy' call on Marico after the earnings announcement but the FMCG major, but reduced its target price for the stock to Rs 650 from Rs 660. The brokerage's target implies an upside of 25.8 per cent from the previous close. 

According to Jefferies, Marico's: 

--Gross margin expanded sharply to a multi-quarter high on input cost correction along with a change in the mix 

--Revenue declined but were less relevant given the high commodity dependence 

--Volume growth remained weak 

--Management sounded confident on FY25 as it expects low teens EPS growth

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