Marico Ltd and Dabur India Ltd, prominent players in India's FMCG sector, witnessed significant gains in their stock prices as both companies reported robust business updates for the first quarter of FY25. Marico's shares surged up to 6.56%, trading near its 52-week high, fueled by a modest uptick in underlying volume growth in its domestic business. The company attributed this growth to strategic adjustments in distributor stock levels aimed at enhancing return on investment (ROI) and streamlining direct reach through Project SETU.

Specifically, Marico highlighted that its flagship product, Parachute Coconut Oil, achieved low single-digit volume growth, while Saffola Oils delivered mid-single-digit volume growth amidst stable input and consumer pricing conditions. The company's proactive measures in distributor management and channel expansion initiatives contributed to maintaining growth momentum despite market challenges.

Similarly, Dabur India saw its shares climb as much as 4.39%, nearing its 52-week high, following optimistic Q1 FY25 updates. The company reported expectations of mid to high single-digit consolidated revenue growth, driven by improved demand trends, particularly in rural markets. Dabur's India business is anticipated to record mid-single-digit volume growth, supported by robust performance in segments like Health Care Products (HCP) and Healthcare.

Despite challenges from scorching summer weather impacting out-of-home consumption, Dabur highlighted strong performance in categories like Badshah Masala, expected to see high teens volume growth. The company's strategic focus on product innovation and market penetration in key segments underscored its resilience in navigating market dynamics.

Investors responded positively to these updates, with Marico's stock trading 5.05% higher and Dabur India's shares up by 3.56% on the Bombay Stock Exchange (BSE) by mid-day trading. These gains reflect investor confidence in the FMCG sector's ability to capitalize on evolving consumer trends and maintain growth momentum amidst economic fluctuations.

In conclusion, the strong performance of Marico and Dabur India in Q1 FY25 underscores their strategic agility and market resilience. As both companies continue to innovate and expand their product portfolios, stakeholders remain optimistic about their prospects in India's competitive FMCG landscape.

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