The share price of Marico rallied over 4 percent to hit a fresh 52-week high of Rs 533.10 apiece on Tuesday after global brokerage firm Credit Suisse maintained its bullish stance on the stock owing to the company’s rising revenues and growth opportunities ahead.

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The brokerage maintained its 'buy' rating on the stock and increased the target price to Rs 600 per share from Rs 490 earlier.

As per Credit Suisse, Marico’s Saffola Foods business expansion can drive a re-rating in the company.

The brokerage is of the view that Marico would be amongst the most successful TAM (Total Addressable Market) expansions in the FMCG sector if it achieves the revenue target for Saffola Foods in fiscal 2024.

“The target of Rs 850 crore in foods segment will be achieved via one more category entry, while the company needs faster ramp-up in honey and soya chunks to achieve the revenue target,” Credit Suisse said in a note.

In its base case, Credit Suisse sees Saffola Foods reaching Rs 740 crore of revenue in FY24.

Saffola refined edible oils grew 17 percent in volumes in Q4FY21. The brand has delivered double-digit volume growth for the sixth consecutive quarter on the back of increased household penetration and the growing relevance of healthy cooking.

However, the brokerage lowered its FY22 EPS estimate by 2 percent due to near-term margin pressures.

Marico posted a net profit of Rs 227 crore in the fourth quarter fiscal 2021, registering a growth of 14.1 percent from Rs 199 crore in the year-ago quarter.

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Marico Q4 net profit rises 14% to Rs 199 crore; Revenue up 34.5%; Domestic volume growth at 25%

Its revenue from operations during Q4FY21 rose 34.5 percent to Rs 2,012 crore from Rs 1,496 crore, YoY. The revenue growth was backed by robust volume growth of 25 percent in the domestic business and constant currency growth of 23 percent in the international business.

Domestic volume growth beat CNBC-TV18 analysts' poll estimates of 16-18 percent.

At 11:35 am, the shares of Marico were trading 4.46 percent higher at Rs 531.25 apiece on the BSE.

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