Marico share price falls over 2% after Q1 results; Should you buy, hold or sell?

livemint.com:

Marico share price fell over 2% on Monday after the homegrown FMCG major reported Q1 results. Marico shares fell as much as 2.38% to ₹559.65 apiece. Marico Ltd on Friday reported 15% rise in its consolidated net profit to ₹436 crore for the first quarter ended June 30, 2023 as compared to a net profit of ₹377 crore in the year-ago quarter.

Harsh Mariwala-led company’s revenue from operations fell 3.16% to ₹2,477 crore in Q1FY24 from ₹2,558 crore, YoY. The FMCG major’s gross margin expanded by 494 bps YoY and 257 bps sequentially, owing to incrementally softer input costs. EBITDA for the quarter grew 9% to ₹574, while EBITDA margin expanded by 253 bps YoY to 23.2%.

Read here: Marico Q1 Results: Consolidated PAT up 15% to ₹436 crore, revenue slips 3% Marcio Q1 results were largely in-line with brokerages’ estimates. Here’s what brokerages recommend on Marico stock after Q1 results. Overall weakness in all key segments is underwhelming and likely to persist for one more quarter, in our view.

However, by H2, the impact of price-deflation on overall portfolio is likely to subside (likely positive revenue growth), ICICI Securities said. We like the continued execution driven outperformance in food and premium personal care segments. Market share sustenance or gain in 85% of the portfolio is comforting.

International business maintained healthy revenue growth trajectory. Operating profit margins remained strong led by input cost deflation. Foray into plant-based nutraceutical space through strategic investment in “Plix" is positive, it added.