Buy Marico; target of Rs 810: Emkay Global Financial

buy

Emkay Global Financial' research report on Marico

However, the company’s near-term performance is likely to be impacted by the inflationary copra prices in both, India and Indonesia. Amid unprecedented surge in copra prices, Marico’s nearterm margin in India (1/3rd of revenue) and in Bangladesh (3/5th of revenue) is likely to be stressed. However, we expect cyclical pressures to ebb with improvement in market supplies in coming months, in line with management expectations. We uphold our expectations of a margin recovery in 2H, wherein the company is likely to manage growth with better volumes and improved margins; this would lead to double-digit earnings growth. We see risk to our margin and growth assumptions for FY26E, if the copra price inflation persists.

Outlook

We maintain our long-term positive view on Marico with Jun-26E TP of Rs810 (on 50x P/E), given improved execution.

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Marico - 18072025 - emkay