Stock To Buy: FMCG Major To Consider 62nd Dividend On Feb 27, TP Rs 618: BoB Capital

Board of Directors of large cap FMCG giant Marico Ltd will hold meeting on February 27, 2024 to consider a proposal for second interim dividend. The company fixed March 6, 2024 as the record date for interim dividend. Last trading price of Marico Ltd shares on BSE is Rs 539.00 apiece with marginal intraday surge of 0.02%. BoB Capital has recommended buy call to Marico shares with target price of Rs 618. If you buy Marico shares now, you can fetch likely return of 14.66%. Marico shares gained 3.50% in last 1-week. Check details below:

Marico To Consider Interim Dividend Soon: As per the regulatory filing of the company dated Feb 19, "a meeting of the Board of Directors of the Company is scheduled to be held on Tuesday, February 27, 2024, to inter-alia consider a proposal for declaration of Second Interim Equity Dividend, if any, for the financial year 2023-24. In the event of the Second Interim Equity Dividend being declared by the Board of Directors, the record date for the same pursuant to Regulation 42 of the SEBI Listing Regulations shall be March 6, 2024."

Marico Dividend History: It has announced 61 dividends since September 4, 2000. In the last 12 months, Marico announced an equity dividend amounting to Rs 7.50 per share. If the current share price of ₹539.00 is taken into consideration, it offers a dividend yield of 1.39%.

BoB Capital Recommends Buy Call: According to the brokerage report of BoB Capital dated Jan 30, 2024, "We roll valuations over to FY26E and now value the stock at 44x FY26E EPS (vs. 47x on FY25E) - in line with the long-term mean - to bake in the growth slowdown. Our TP thus reduces to Rs 618 (from Rs 646). We maintain BUY as we believe a continued focus on the food portfolio, product launches, and brand investments would aid volume recovery and profitable growth."

Marico Shares Performance & Return: The 52-week high price of Marico shares on BSE is Rs 595.00 apiece and 52-week low price is Rs 462.95 apiece, respectively. The company has a market capitalisation of Rs 69,739.19 crore. Marico shares declined a little over 3% in last 6-months, gained 7% in last 1-year, and offered return of 28% in last 3-years. In last 5-years, Marico stock gained 59% and 401% in last 10-years.

Marico Financials: The leading FMCG sector company on January 29 announced a surge of 15.9% year-on-year (YoY) in its net profit to Rs 386 crore for the quarter ended December 31, 2023 as against Rs 333 crore declared in the corresponding quarter of last year. It revenue from operations fell 1.9% to Rs 2422 crore as compared to Rs 2470 crore in the similar quarter of last fiscal. The company declared a jump of 12.5% in its EBITDA at operating level to Rs 513 crore for the December 2023 quarter as against Rs 456 crore in the similar quarter of last fiscal.

About: Marico Limited is one of India's leading consumer goods companies operating in global beauty and wellness categories. With its headquarters in Mumbai, Marico is present in over 25 countries across emerging markets of Asia and Africa. It nurtures leading brands across categories of hair care, skin care, edible oils, healthy foods, male grooming, and fabric care, according to its official website.

Disclaimer:

The stock has been picked from the brokerage report of BoB Capital. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.