Marico shares zoom over 9% on Q4 earnings beat. More upside left?

Marico’s Q4 consolidated net profit grew by 20.3% year-on-year and revenues slightly increased by 4%, leading shares to rally to a 9.3% day high at Rs 539.50. Despite an increase in advertising spend, Marico managed to beat earnings expectations due to better-than-expected revenues and expanding margins by 153 bps to 17.5%. Analysts suggest that Marico is a good buy with a target price of Rs 600 as the margin outlook remains strong with favorable input prices and investments into high-growth portfolios. However, some analysts suggest caution due to intense competition across categories and inflationary pressures.