Marico Ltd., a large-cap business that competes in the fast-moving consumer goods (FMCG) sector, with a market value of Rs. 70,167.91 Cr. Marico is one of India’s leading consumer goods companies thanks to its portfolio of brands, which includes Parachute, Saffola, Saffola FITTIFY Gourmet, Saffola ImmuniVeda, Saffola Mealmaker, Hair & Care, Parachute Advansed, Nihar Naturals, Mediker, Coco Soul, Revive, Set Wet, Livon and Beardo, and Just Herbs. Brands including Parachute, Parachute Advansed, HairCode, Fiancée, Caivil, Hercules, Black Chic, Code 10, Ingwe, X-Men, Mediker SafeLife, Thuan Phat, and Isoplus are represented in the worldwide consumer products line. The business operates in more than 25 developing countries in Asia and Africa from its base in Mumbai. The company oversees seven factories in India, located in Puducherry, Perundurai, Jalgaon, Guwahati, Baddi, and Sanand. Marico Ltd. stock is one of the multibagger stocks that has transformed investors from lakhpati to crorepati by releasing just one bonus share.

Share price history of Marico Ltd

Shares of Marico Ltd. closed trading on the NSE on Friday at Rs. 542.05 per unit, down 1.35 percent from the previous close of Rs. 549.45. The stock’s total volume of trades on Friday was 1,834,851 shares, compared to the 20-Day average volume of 1,439,506 shares. Although the stock has lost 1.00% over the previous year, it has gained 5.44% year to date in 2022. The company’s 52-week high on the NSE was $₹607.70 on October 18, 2021, and its 52-week low was ₹455.65 on January 27, 2022, meaning that the stock is now trading 10.80% below the high and 18.96% above the low. For the quarter that ended in June 2022, the company stated that promoter ownership was 59.48%, FII holding was 25.16%, DII holding was 8.67%, government holding was 0.09%, and public shareholding was 6.49%.

The stock price has increased dramatically from ₹2.81 on July 6th, 2001, to the current market price, registering a multibagger return and an all-time high of 19,190.04%. An investor initially received 35,587 shares of this corporation if they had agreed to invest one lakh rupees. Many years later, on December 22, 2015, the corporation announced bonus shares in a 1:1 ratio, which is encouraging news for shrewd investors. The investor’s share count increased from their original investment to 71,174 after this incident. As a result, at the current market price post the bonus issuance, the total value of the shares exceeds Rs. 3.85 crore.

Q1FY23 results of Marico

The company’s profit after tax (PAT) grew by 4% year over year to ₹371 Cr in Q1FY23 from ₹356 Cr in Q1FY22. The company reported a profit before tax (PBT) of ₹499 Cr in Q1FY23, higher than ₹467 Cr in Q1FY22, or a YoY growth of 7%. The company said that EBITDA climbed by 10% YoY to ₹528 Cr in Q1FY23 from ₹481 Cr in Q1FY22 and that EBITDA Margin jumped by 159 bps to 20.6 Percent from 19.0 Percent. In Q1FY23, the company’s sales revenue grew by 1% YoY to ₹2,558 Cr from ₹2,525 Cr in Q1FY22.

Marico Share Price Target; Should You Buy?

With a recommended stop loss price of ₹500, the research analysts of the brokerage company ICICI Securities have set a target price of ₹610 from a buying range of ₹540 to ₹547 for Marico. For the stock to reach the target price, the analysts have set Marico share price target period of three months.

In a research report, they said that “midcap and small cap equities are undergoing a catch up exercise in the recent Nifty consolidation. After the abrupt ascent of the last several months, we think the Nifty may remain in a period of consolidation. However, a new upward trend is anticipated in the FMCG sector, where certain midcap companies are expected to perform in the upcoming sessions in addition to sector heavyweights. On account of new holdings in the futures market, stocks like Marico, which have been seeing delivery-based purchasing activity, are anticipated to resume their upward trend.

“As the company has experienced a short covering trend over the past few months, leveraged holdings in the stock have significantly decreased. The company’s open interest is currently below 1 crore shares, one of the lowest levels in the past six months. However, anytime open interest has dropped below 1 crore, the price has demonstrated a tendency to climb upward with long accumulation. Initial indications of recent long additions to the stock point to potential higher on the strength of recent accumulation. The stock has had ongoing buying support in the levels of ₹505-₹510. For practically the previous three series, it has been trading above these levels. At the same time, we anticipate that downside risk will be constrained by sustained Put writing at the ₹500 and ₹520 strikes. Additionally, the September series of the 540 strike call option is already seeing close, indicating a favourable bias in the stock. These positions should help it break over the lower end of the option range, they continued.

The stock “has experienced one of the significant delivery-based activity around ₹510 in the recent week,” according to research experts. It has since been moving slowly northward, and there are early indications that the stock is establishing a foundation near the support region. The stock has seen a time basis consolidation between the range of ₹510 and ₹550 since July 2022. All available information suggests that the stock is currently poised to surpass the ₹550-point threshold and maybe break out of the present consolidation.