Buy Marico, target price Rs 610: ICICI Direct

ICICI Direct has buy call on Marico with a target price of Rs 610. The current market price of Marico is Rs 545.25. Time period given by analyst is 3 months when its price can reach defined target.

Marico, incorporated in the year 1988, is a large cap company (having a market cap of Rs 70555.01 crore) operating in FMCG sector.

Its key Products/Revenue Segments include Edible Oil, Others, Personal Care, Export Incentives, Scrap for the year ended March 31, 2022.


Financials
For the quarter ended June 30, 2022, the company has reported a consolidated total income of Rs 2575 crore, up 17.85 per cent from last quarter total income of Rs 2185 crore and up 0.90 per cent from last year same quarter total income of Rs 2552.00 crore. Company has reported net profit after tax of Rs 377.00 crore in latest quarter.

The company’s top management includes Mr.Harsh Mariwala, Mr.Apurva Purohit, Mr.Milind Barve, Mr.Ananth Sankaranarayanan, Mr.Nayantara Bali, Ms.Hema Ravichandar, Mr.Nikhil Khattau, Mr.Rishabh Mariwala, Mr.Rajendra Mariwala, Mr.Saugata Gupta, Mr.Rajeev Vasudeva. Company has B S R & Co. LLP as its auditors. As on 30-06-2022, the company has a total of 129 Crore shares outstanding.

Investment rationale
The stock has seen one of the notable delivery based action around Rs 510 in the last week. Since then, it has been
crawling northwards with early signs of the stock making a base at the support area.

Since July 2022 to till now, the stock has witnessed a time base consolidation between the range of Rs 510 and Rs 550.
Currently, all the data points indicate that the stock is well placed to cross the hurdle levels of Rs 550 and may witness breakout from the current consolidation.

Promoter/FII Holdings
Promoters held 59.48 per cent stake in the company as of 30-Jun-2022, while FIIs owned 25.16 per cent, DIIs 8.66 per cent.