I-Sec maintains Add on Marico, target price Rs 740: ICICI Securities
ICICI Securities maintains an Add call on Marico, setting a target price of Rs 740. The brokerage anticipates a revenue, EBITDA, and PAT CAGR of 11%, 14%, and 11% respectively, from FY25-27E. This growth is expected to be driven by market share gains, expansion in foods and premium personal care, and strong international performance.
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(Disclaimer: Views and recommendations given in this section are the analysts' own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)
ICICI Securities has maintained the Add call on Marico with a target price of Rs 740. The current market price of Marico is Rs 704.3. Marico, incorporated in 1988, is a Large Cap company wiht a market cap of Rs 91049.83 crore, operating in the FMCG sector.Marico's key products/revenue segments include Edible Oil, Others, Personal Care, Export Incentives, Scrap for the year ending 31-Mar-2024.For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 2777.00 crore, down -2.08 % from last quarter Total Income of Rs 2836 crore and up 21.11% from last year same quarter Total Income of Rs 2293 crore. The company has reported net profit after tax of Rs 345.00 crore in the latest quarter.The company's top management includes Mr.Harsh Mariwala, Ms.Nayantara Bali, Ms.Apurva Purohit, Mr.Rajeev Vasudeva, Mr.Milind Barve, Mr.Ananth Sankaranarayanan, Mr.Rajendra Mariwala, Mr.Rishabh Mariwala, Mr.Nikhil Khattau, Mr.Saugata Gupta, Mr.Rajan Bharti Mittal. Company has B S R & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 130 crore shares outstanding.ICICI Securities expects Marico to deliver revenue / EBITDA / PAT CAGR of 11/14/11 (%) over FY25-27E. In their view, Marico could deliver double-digit revenue growth over medium term through consistent outperformance vs peers driven by 1) market share gains in core India portfolios, 2) accelerated growth in foods and premium personal care, and 3) double-digit constant currency growth in international business. The brokerage also expects operating margin to improve in medium term with moderation in RM inflation, leverage benefits and premiumisation of the portfolio. They maintain ADD with a DCF-based target price of Rs 740. At the target price, the stock will trade at 47x P/E multiple for Mar'27E.Key downside risks are higher-than-expected inflation in copra prices, execution misses and risks associated with leadership changes. Upside risk includes Better-than-expected performance in D2C brands and faster-than-expected recovery in core categories.Promoters held 59.05 per cent stake in the company as of 31-Mar-2025, while FIIs owned 22.09 per cent, DIIs 13.98 per cent.
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