Rs 6.50/Share Dividend: Bet On The Blue Chip FMCG Stock Ahead of Record Date This Week?

As of Saturday's closing session, Marico Ltd., a blue chip firm in the FMCG industry, has a market capitalization of Rs 68,346.98 Cr. One of the top manufacturers of beauty and wellness products in India is Marico. With its headquarters located in Mumbai, the company operates in more than 25 emerging Asian and African markets. With locations in Puducherry, Perundurai, Jalgaon, Guwahati, Baddi, and Sanand, it runs seven factories in India. The firm sells its products in selected Asian and African regions in addition to India. Parachute, Saffola, Saffola FITTIFY, Hair & Care, Parachute Advansed, Nihar Naturals, Mediker, Pure Sense, Coco Soul, Revive, Set Wet, Livon, Beardo, Just Herbs, True Elements, and Plix are among the brands that the firm offers.

Marico Dividend

The Board of Directors considered and declared "Second Interim Equity Dividend for the financial year 2023-24 of Rs. 6.50/- per equity share of Re. 1 each. As intimated vide our letter dated February 19, 2024, the record date for reckoning the list of shareholders who shall be entitled to receive the said interim dividend shall be Wednesday, March 6, 2024. The Second Interim Equity Dividend will be paid to such shareholders on or before Thursday, March 28, 2024," said Marico in a regulatory filing.

Marico Growth Outlook

"The domestic business has contended with a persistently challenging operating environment with no visible buoyancy in consumption sentiment. We continue to draw confidence from healthy offtakes and market share gains in our key portfolios, while we have also initiated corrective measures to re-ignite growth in the traditional channel and sustained investment towards driving differential growth in new businesses in line with our strategic priorities. With macro indicators signaling positivity, continued government spending and more favorable consumer pricing across FMCG categories, we remain optimistic of a gradual uptick in consumption trends over the course of the next 4-5 quarters," said the management team of the FMCG giant.

"Owing to the broad-based construct, the International business remained rather steady despite transient macroeconomic and currency devaluation headwinds in select regions. We expect improving trends ahead and aim to maintain the double-digit constant currency growth momentum on full year basis. Our consolidated revenue growth is expected to move into the positive territory in the last quarter of the year as the base catches up. Gross margin is expected to expand by 450-500 bps on a full-year basis, higher than earlier envisaged, owing to sustained input cost tailwinds and favorable portfolio mix. We will also sustain aggressive brand-building investments towards strengthening the equity of the core and new franchises to drive growth. Consequently, we expect operating margin to expand by ~250 bps in FY24," Marico said in a statement.

"We continue to make positive strides towards our portfolio diversification objective constituted by an accelerated scale up in Foods, building a Digital First portfolio while steering key franchises to profitability, and broad basing the international business to enable consistent double-digit growth. We are also on course to deliver our highest ever operating margin in FY24 led by robust gross margin expansion," the company said in a statement.

Marico Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said the current trading price of the stock stands at 528.20 levels, emphasizing crucial support at 515 levels. Although the stock is currently trading below its 200-day Exponential Moving Average (EMA), its proximity to the 20-day and 50-day EMAs suggests a sideways trajectory.

A formidable resistance is anticipated around 540 levels, presenting a pivotal point for potential strength in the stock. A breakthrough beyond this resistance could signify a bullish phase. Conversely, breaching the support at 515 might signal further weakness.

Investors with short to medium-term positions are advised to retain holdings, implementing a trailing stop loss at 515 to safeguard against potential downturns. For new investments, a prudent approach would be to consider purchases above the 540 levels, targeting a robust upward movement towards 590 and beyond.

The analysis incorporates key support and resistance levels, offering strategic insights for investors navigating the stock's current market dynamics.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.