Buy Marico; target of Rs 825: Sharekhan

Sharekhan's research report on Marico

During Q1FY26, volume growth was better q-o-q as rural demand continued to improve, while urban demand remained steady. The management expects gradual improvement in the quarters ahead, supported by easing inflation, a favourable monsoon season and policy stimulus. Consolidated revenue grew in low twenties aided by good growth in the domestic business and high-teen constant currency growth in the international business. This puts the company on track to deliver double-digit revenue growth in FY26. Despite input cost pressures and continued A&P investments, Marico has guided for modest y-o-y operating profit growth in Q1FY26. It expects gross margin pressure to ease from H2FY26.

Outlook

We retain a Buy rating on Marico with an unchanged PT of Rs. 825. The stock trades at 51x/44x its FY26E/FY27E EPS, respectively.

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Marico - 07072025 - khan