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Marico Shares Drop 4% as BSE FMCG Index Falls by 1.9% - Read Now

Marico shares dropped 4%, impacting the BSE FMCG index, which fell 1.9%. Godrej Consumer saw a 10.5% drop, while Hindustan Unilever lost 3.7%. Learn about Marico's YoY performance and the broader market trends.

By Aayushi Dubey Updated: Dec 9, 2024, 11:23 IST

Marico’s share price dropped by 4% in today’s trading session, closing at Rs 604.8. The broader BSE FMCG index was also down 1.9%, settling at 20,764.6. This market movement reflects broader declines in FMCG stocks, with major players like Godrej Consumer Products and Hindustan Unilever facing significant losses.

Marico Share Price Performance

  • Marico’s current price stands at Rs 604.8, a 4% drop from its previous close.
  • Over the last year, the stock has risen from Rs 536.5 to Rs 604.8, marking a 12.7% gain.
  • Marico’s price-to-earnings ratio is currently at 48.6, reflecting its valuation based on rolling 12-month earnings.

BSE FMCG Index Trends

The BSE FMCG index dropped by 1.9%, primarily led by:

  • Godrej Consumer Products (down 10.5%).
  • Hindustan Unilever (down 3.7%).

On the positive side, BOM.BURMAH (up 3.4%) and Gujarat Ambuja (up 1.3%) showed gains.

Market Movements: Benchmark Indices

  • BSE Sensex fell 0.3% to 81,462.8, driven by losses in Hindustan Unilever (-3.7%) and Nestle (-1.8%).
  • NSE Nifty dropped 0.4% to 24,585. Tata Consumer Products and Hindustan Unilever were among the top losers.

Despite today’s dip, both indices have shown strong growth over the past year, with the BSE Sensex gaining 17.6% YoY.

Marico’s Financial Performance

Marico reported robust growth in its financial results:

  • Q2 FY24 Results:
    • Net profit increased by 20.3% YoY to Rs 4,330 million.
    • Net sales rose 7.6% YoY to Rs 26,640 million.
  • FY24 Full-Year Results:
    • Net profit grew 13.6% to Rs 15,020 million.
    • Revenue declined slightly by 1.1% to Rs 96,530 million.

These results highlight Marico’s resilience in maintaining profitability despite challenges in revenue growth.

Top FMCG Stocks Over the Year

The FMCG sector witnessed significant movements over the last 12 months:

  • Top Gainers in BSE FMCG Index:

    • Godfrey Phillips (up 166.2%).
    • BOM.BURMAH (up 74.2%).
    • E.I.D. Parry (up 65.4%).

  • Overall BSE FMCG Index Performance:

    • The index rose 6.1% YoY, climbing from 19,569.7 to 20,764.6.

Outlook for Marico and FMCG Sector

Marico’s recent dip reflects broader market trends rather than company-specific issues. With its strong financial results and consistent growth, the stock remains a key player in the FMCG sector. The broader FMCG index is likely to remain sensitive to market volatility, especially with inflationary pressures and changing consumer demands.

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