Buy Marico; target of Rs 850: Anand Rathi

Anand Rathi is bullish on Marico has recommended buy rating on the stock with a target price of Rs 850 in its research report dated August 05, 2025.

Broker Research

August 06, 2025 / 12:25 IST

buy

26 Aug, 2025 12:21

Volume

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Anand Rathi's research report on Marico

With a 9% rise in domestic volumes (vs. the Street’s 8%) and a 20.1% EBITDA margin (vs. 20.3% est.), Marico posted good revenue but a weaker operating performance. Management, though, was optimistic of high single digit volume growth, led by its core categories, GT revival via Project SETU, and new businesses. Also, with higher prices of Parachute (up 60%) and Saffola, management guided to >25% revenue growth in FY26, and doubledigit profit growth in two years. The price of copra have fallen 12% from its Jul peak, which along with price hikes should help gradual margin recovery in coming quarters. We introduce FY28 figures and raise our FY26e/27e EPS 4%/8% to factor in higher volumes, pricing and the VAHO revival. We turn bullish on the company on a) revival in its core portfolio aided by Project Setu, b) consistent volume delivery aided by digital brands & premium PC (22% of revenue) and c) potential cyclical margin reversion next year on the copra-price fall.

Outlook

Thus, we raise the stock to a Buy, with a higher 12-mth TP of Rs850, 47x Sep’27e EPS (earlier Rs710, 45x FY27e EPS).

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