Buy Marico; target of Rs 775: Motilal Oswal

Buy

Motilal Oswal's research report on Marico

Marico (MRCO) reported consol. revenue growth of 15% YoY (in line) in 3QFY25. Domestic revenue growth was 17% YoY, with 6% volume growth. International growth was 10% YoY (16% cc growth). Domestic revenue was driven by strong core category growth and new business expansion. Parachute coconut oil (PCNO) posted 15% YoY value growth and 3% volume growth despite a 1% grammage reduction in the key price-point pack. The growth was driven by a price hike taken during the year. A ~5% price increase was also implemented at the quarter's end. PCNO gained 140bp market share. VAHO revenue was down 2% YoY, affected by persistent weakness in the mass segment. Saffola oil clocked low single digit volume growth, with revenue growing 24% YoY as the pricing cycle turned favorable after two years. Foods sustained strong growth of 31% YoY. Premium Personal Care sustained its healthy growth trajectory.

Outlook

While rising input costs may impact near-term margins, the long-term outlook remains positive, supported by a favorable product mix and premiumization. We reiterate our BUY rating on the stock with a TP of INR775 (based on 50x Dec’26E EPS).

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Marico - 03022025 - moti