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

Marico Ltd., a reputable company in the FMCG sector, had a market value of Rs 68,346.98 crore as of Saturday’s closing session. Marico is one of the leading producers of health and cosmetic goods in India. The firm works in more than 25 rising Asian and African regions, with its headquarters situated in Mumbai. It operates seven plants in India, including ones in Puducherry, Perundurai, Jalgaon, Guwahati, Baddi, and Sanand. In addition to India, the company offers its goods in a few Asian and African countries. The brands that the company sells include 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.

Following consideration, the Board of Directors decided to announce the “Second Interim Equity Dividend of Rs. 6.50/- per equity share of Re. 1 each for the financial year 2023–24.” The record date for calculating the list of shareholders who will be eligible to receive the aforementioned interim dividend is Wednesday, March 6, 2024, as stated in our letter of February 19, 2024. Such shareholders will receive payment of the Second Interim Equity Dividend on or before Thursday, March 28, 2024, according to a regulatory filing by Marico.

Marico Growth Prospects
“The domestic company has faced an operational climate that is consistently difficult to operate in, with no discernible improvement in consumer mood. Healthy offtakes and increases in market share in our core portfolios give us confidence, and we have also started corrective actions to rekindle growth in the conventional channel and persistent investment to drive differentiation growth in new businesses in line with our strategic priorities. We are confident about a modest improvement in consumption patterns over the course of the next 4–5 quarters, given the positive macro indicators, ongoing government expenditure, and more attractive consumer pricing across FMCG categories,” the management team of the FMCG behemoth said.

“International commerce remained relatively stable due to the broad-based framework, even in the face of temporary macroeconomic challenges and currency devaluation difficulties in some countries. We anticipate positive developments in the near future and want to sustain the double-digit steady currency growth pace for the whole year. As the base catches up, our consolidated revenue growth should enter the positive territory in the last quarter of the year. Full-year gross margin growth is anticipated to be 450–500 bps higher than previously anticipated due to persistent tailwinds in input costs and a well-balanced portfolio. In order to support growth, we’ll continue to make significant efforts in developing our brand in order to bolster the value of our existing brands and add new ones. As such, we anticipate a ~250 bps growth in operating margin in FY24,” a statement from Marico said.

“We are making progress toward our goal of diversifying our portfolio by rapidly scaling up our food business, establishing a Digital First portfolio while guiding important franchises to profitability, and broadening the foundation of our international operations to support steady double-digit growth. The business released a statement saying, “We are also on track to deliver our highest ever operating margin in FY24, driven by robust gross margin expansion.”

Target Price for Marico Shares
The stock is now trading at 528.20 levels, according to Choice Broking’s Equity Research Analyst Deven Mehata, who also highlighted the importance of the 515 levels as critical support. Despite the fact that the stock is now trading below its 200-day EMA, its closeness to the 20- and 50-day EMAs points to a sideways trajectory.

Around 540 levels, strong resistance is expected, providing a critical area where the stock might potentially strengthen. A break of this barrier may indicate the start of a bullish period. On the other hand, breaking through the support at 515 might indicate further weakness.

It is recommended that investors who have short- to medium-term positions keep onto their assets and use a trailing stop loss at 515 to protect themselves against any declines. A wise course of action for new investments would be to think about buying above the 540 levels with the goal of a strong upward surge into 590 and beyond.

Important support and resistance levels are included in the research, providing investors with strategic insights to navigate the stock’s current market dynamics.

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