Buy Marico; target of Rs 825: Motilal Oswal

Motilal Oswal's research report on Marico

Marico (MRCO) reported consolidated revenue growth of 23% YoY (in line) in 1QFY26. Domestic revenue growth was 27% YoY with volume growth of 9%. International growth was 12% YoY (+19% CC). Domestic revenue growth was driven by strong core category growth and sustained success for its new growth drivers. Parachute coconut oil (PCNO) posted 31% YoY value growth with a 1% volume decline, primarily driven by price hikes. MRCO undertook an additional ~30% price hike in 1QFY26, the full impact of which is expected to be reflected in 2Q. Meanwhile, copra prices have begun to soften, currently down ~12% from their peak.

Outlook

We model a 13%/12% revenue and EBITDA CAGR during FY25-28E and reiterate our BUY rating on the stock with a TP of INR825 (based on 50x Jun’27E EPS).