Marico stock hovering near 52-week high

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Marico’s stock, FMCG, has been on a rollercoaster ride since May. From falling 1 percent on May 5 to jumping 8 percent on May 8, the stock has come close to a 52-week high on two occasions in the past few days.

With IMD predicting a normal monsoon this year, the market sees an upward trend for Mariko. Although Reserve Bank of India Governor Shaktikanta Das has highlighted concerns about El Niño uncertainty that could lead to food price inflation affecting the performance of consumer goods stocks on the stock exchanges, Mariko’s underlying trend seems to be bullish as it is Many analysts and brokerages place a buy/accumulate call on this stock.

Marico shares fell 0.79 percent to 545.45 Indian rupees on Thursday. Earlier in the day, it hit an intraday high of Rs 551.10 – just 2.3 per cent away from its 52-week high of Rs 558.75.

said Abhishek Jain, Head of Research, Arihant Capital business lineWith lower raw material prices over the past few weeks and a promising outlook for FY24 based on management commentary after the Q4 FY23 call, the stock gained an impressive 15 to 17 percent, making it a standout performer in the segment. As the pressure on raw material prices eases, Marico is expected to see improved profit margins in the future.”

The company’s value-added hair oil segment also showed strong growth, posting a significant increase of 13 percent and showing gross margin expansion in consecutive quarters. He added, “Given these factors, we maintain a positive outlook for Marico and recommend buying on market declines.”

Take profit on Thursday

“The stock has been up more than 20 percent since April, but over the past few days, it has seen profit-taking and selling pressure at higher levels. Investors have moved to the defensive after global recession fears, and also against the backdrop of strong consumer demand.

said Gaurav Pessa, vice president of InCred Equities business lineOne of the prominent reasons for the strong rise in Mariko is the strong breach seen in the Nifty FMCG Index on the weekly charts. The stock saw some profit taking today, which was also seen in many sectoral market indices as well as broader. However, the stock continues to It is trading comfortably above the breakout area which means more upside could be possible until it settles at 520. The stock can attempt new lifetime highs once it gives a weekly close above 560.”

Elara Securities has revised its ratings from Buy to Accumulate, while Prabhudas Lilladher recommends Accumulate with a price target of $550.