Marico's Q4 report impresses, stock runs up 4%; should you buy, sell, or hold?

Marico reported a consolidated revenue growth of 20 percent YoY in 4QFY25.

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Consumer staples player Marico's shares gained four percent to Rs 723 on May 5, after reporting better-than-expected earnings for the quarter ended March.

Marico reported an eight percent increase in net profit at Rs 343 crore for the quarter ended March 31, 2025, helped by resilient rural demand and premiumisation. It reported net profit of Rs 318 crore in the same period last year. The company's consolidated revenue rose 20 per cent  to Rs 2,730 crore in the January to March quarter.

Domestic revenue growth was driven by strong core category growth and sustained success for its new growth drivers. Parachute coconut oil (PCNO) posted 22 percent YoY value growth with a 1 percent volume decline, driven primarily by price hikes.

"We expect gradually improving growth trends in the core categories on the back of moderating trends in retail and food inflation as well as promise of a healthy monsoon season. This will be further aided by our ongoing initiatives to support select General Trade (GT) channel partners and transformative expansion in our direct reach footprint under Project SETU," Marico said.

In FY26, Marico expects to sustain double-digit revenue growth and shall strive to deliver double-digit operating profit growth. In FY26, annualised volume growth is likely to be over 5 percent.

At 9.18 am, shares of Marico were quoting Rs 726.25 per share, higher by 4.1 percent on the NSE.

Should you buy, sell, or hold Marico shares?

Domestic brokerage Ambit raised its target price on the firm's stock to Rs 766, up from Rs 736, while maintaining its 'buy' call. The brokerage said that the key to long-term growth will be the scale-up in the adjacency portfolio.

International broking house Morgan Stanley maintained its 'equal-weight' rating on Marico, while Jefferies reiterated its 'buy' call, and hiked its target price to Rs 800 per share, from Rs 800 earlier amid "impressive" volume growth.

"The improvement in market share gain, accelerated growth in Foods and Premium Personal Care, healthy growth in the International business, and normalization of prices are expected to help Marico deliver a better revenue print in FY26," said Motilal Oswal, maintaining its target of Rs 800, with a 'buy' call.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.