Orkla India’s shares nudged higher after ICICI Securities started covering the stock with a fresh ‘Buy’ call and a new price target of Rs 800.
What ICICI Sees in Orkla India
ICICI believes the company’s biggest strength is its strong foothold in South India, thanks to well‑known brands like MTR and Eastern. The firm is also expanding its distribution reach.
Key Numbers
- Current closing price: Rs 612 (up 0.39%).
- ICICI’s target price: Rs 800, implying roughly 30% upside.
- Exports make up about 21% of revenue, making Orkla India the country’s largest branded spice exporter, serving over 40 countries.
- Export growth is expected to run at a 12% annual rate from FY25 to FY28.
Growth Outlook
The brokerage expects better profit margins and stronger cash flow as the company improves operational efficiency and shifts to higher‑margin products. This could boost its return on capital employed.
Recent Performance
- Net profit fell 7.26% to Rs 76.68 crore in the September quarter.
- Revenue grew 4.92% to Rs 650.28 crore in the same period.
What This Means for Retail Investors
If Orkla India can sustain export growth and improve margins, the stock may climb toward ICICI’s Rs 800 target, offering a decent upside for investors looking for exposure to the Indian food‑spice sector.
Disclaimer
Remember, this is just an analysis, not a prediction. Always do your own research and consider your risk tolerance before making any investment decisions.