Marico Q1 Review: Positive Outlook Drives ‘Buy’ Rating with Target Price of Rs 825
Marico Ltd., a leading Indian consumer goods company, has shown a promising performance in its Q1 review, driven by market share gains, accelerated growth in foods and premium personal care, and healthy growth in its international business. This positive outlook has led Motilal Oswal to maintain a ‘Buy’ rating on the stock with a target price of Rs 825, based on 50 times Jun’27E EPS.
Key Drivers of Growth
The improvement in market share gain, accelerated growth in foods and premium personal care, healthy growth in the international business, and normalization of prices are expected to help Marico Ltd. deliver a better revenue print in FY26. Additionally, the company has initiated Project SETU, aimed at driving growth in general trade through a transformative expansion of its direct reach, which is expected to improve its distribution reach and further boost growth.
Financial Projections
Despite recent copra inflation, which has led to a cut in FY26E earnings per share, Motilal Oswal has maintained its FY27 and FY28 EPS estimates. The research firm models a 13%/12% revenue and Ebitda CAGR during FY25-28E, underlining the company’s strong growth prospects.
Investment Advice
While the report from Motilal Oswal presents a positive outlook for Marico Ltd., it is essential for investors to consult with financial experts based on their individual needs before making any investment decisions. The views expressed in the report are those of the author entity and do not represent the views of NDTV Profit.
Conclusion
In conclusion, Marico Ltd.’s Q1 review presents a promising picture, driven by key growth drivers and a strong financial outlook. With a ‘Buy’ rating and a target price of Rs 825, investors may consider this stock as a potential addition to their portfolio. However, it is crucial to stay updated with the latest market news and trends to make informed investment decisions.
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