Hold Marico; target of Rs 555: ICICI Direct

ICICI Direct's research report on Marico

Marico is one of the major FMCG companies present in hair oil, edible oil, foods & personal care segment. Major brands include Parachute, Saffola, Nihar, Hair & Care, Set Wet, Livon & Beardo. Marico has an overall distribution network of more than 5.6 million outlets and direct reach of ~1 million outlets. Through its stockist network, it reaches 59000 villages • With high gross margins of 45-50%, the company is able to spend 8-9% of its sales for advertisements to support new categories & products.

Outlook

We maintain our HOLD rating on the stock. We value stock at Rs 555 ascribing 45x PE on FY25 EPS.

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Marico - 06 -02 - 2023 - ic