Marico shares jump over 6% after strong Q2 results, analysts see room to run

what happened

On Tuesday, November 3, shares of Indian consumer goods company Marico Ltd. climbed more than 6.5%. Global investment banks were broadly upbeat after the second-quarter numbers, with potential upside of up to 35% from the previous close. HSBC, Jefferies, Goldman Sachs and JPMorgan kept their buy ratings, while CLSA upgraded the stock to hold from reduce.

HSBC said the quarter was in line with estimates, with EBITDA growth of 27%, and that the outlook for fiscal 2027 was raised to the mid-20s. Its target is 1,080 rupees per share. Jefferies sees close to 30% upside with a target of 1,035 rupees, pointing to volume and EBITDA growth at multi-year highs. CLSA said EBITDA growth came in 3% below its estimates, and its 737-rupee target implies a 7.7% downside. JPMorgan and Goldman Sachs remain positive, with targets of 940 and 950 rupees.

According to TradingView, of the 44 analysts covering the stock, 36 have buy recommendations, seven have hold and one has sell. The shares were trading at 846 rupees.

why it matters

For markets, the combination of double-digit volume growth and a higher EBITDA outlook supports interest in the company's stock within the FMCG sector. Analyst views are split, however, and CLSA regards the quarter as slightly weaker than expected.

market impact

Marico shares: strong results and higher guidance support the stock

• ▲Marico shares pressure up — strong volume growth and a raised EBITDA outlook support demand for the stock

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