Buy Marico; target of Rs 825: Sharekhan

Buy

Sharekhan's research report on Marico

Marico’s Q4FY25 numbers were a mixed bag, with revenues rising 19.8% y-o-y (above estimates), while OPM fell by 263 bps y-o-y to 16.8% (missing estimates). PAT grew by 7.8% y-o-y. Despite input cost headwinds in the near term, Marico expects to sustain the double-digit revenue growth momentum and will strive to deliver double-digit operating profit growth in FY26. It aims to grow the foods business at over a 25% CAGR to ~8x of FY20 revenues in FY27 and scale the digital-first portfolio to ~2.5x of FY24 ARR in FY27. It eyes double-digit EBITDA margin in the portfolio in FY27.

Outlook

The stock trades at 49x/43x its FY26E/FY27E EPS, respectively. We retain a Buy with a revised PT of Rs. 825.

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Marico - 21052025 - khan