Motilal Oswal's research report on Marico
Marico (MRCO) reported a consolidated revenue growth of 31% YoY (in line) in 2QFY26. Domestic revenue growth was 35% YoY with volume growth of 7%. The GST transition and trade pipeline adjustments impacted revenue growth by ~2%. International growth was 19% YoY (+20% CC). Domestic revenue growth was driven by strong core category growth and sustained success for its new growth drivers. Parachute coconut oil (PCNO) posted a 59% YoY value growth with a 3% volume decline, primarily driven by price hikes. Copra prices have already corrected by about 15% from the peak levels seen in 2Q, and management expects a more meaningful softening from March onward.
Outlook
We model a 15%/14% revenue and EBITDA CAGR during FY25-28E and reiterate our BUY rating on the stock with a TP of INR850 (based on 50x Sep’27E EPS).
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