Marico shares gain on Satiya Nutraceuticals' acquisition; approach 52-week high

Shares of Marico Ltd surged over 2% today after the FMCG major said it has inked definitive agreements to buy up to 58 per cent of the paid-up share capital of Satiya Nutraceuticals Private Limited on a fully diluted basis. 

Marico stock gained 2.46% to Rs 545.60 on BSE against the previous close of Rs 532.50 on BSE. The large cap stock has gained 5.71% in one year and risen 7.52% since the beginning of this year. Market cap of the firm rose to Rs 70,432 crore on BSE. The stock fell to a 52-week low of Rs 462.95 on April 20, 2023 and rose to a 52-week high of Rs 559 on June 1, 2023. Total 0.24 lakh shares changed hands amounting to a turnover of Rs 1.27 crore. Marico shares are trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.   

According to a regulatory filing by Marico, Satiya Nutraceuticals is headquartered in Mumbai and owns “The Plant Fix- Plix”, a leading plant-based nutrition brand with a strong presence in the rapidly growing health & wellness segment. It also offers a range of tasty and easy to use wellness products 

Marico will buy majority stake in the company for Rs 369 crore. Marico also plans to buy an additional 22.5 percent stake in Satiya Nutraceuticals which will be completed in one or more tranches by May 2025. 

Meanwhile, Morgan Stanley has assigned an overweight rating with a target price of Rs 611. The brokerage said that Plix brand will help Marico achieve Rs 400 crore revenue target in FY24. “The acquisition will help Marico expand into value-added wellness and nutrition portfolio and has a target of scaling up its foods, digital-first and personal care portfolios,” said Morgan Stanley. 

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