'Add' Marico Shares Maintains ICICI Securities, Sees Double-Digit Revenue Growth Ahead

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

We expect Marico Ltd. to deliver revenue / Ebitda / PAT CAGR of 11/14/11 (%) over FY25- 27E. In our 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.

We also expect operating margin to improve in medium term with moderation in raw material inflation, leverage benefits and premiumisation of the portfolio.

We maintain Add with a DCF-based target price of Rs 740. At our target price, the stock will trade at 47x P/E multiple for Mar’27E.

Key downside risks: Higher-than-expected inflation in copra prices, execution misses and risks associated with leadership changes.

Upside risk: Better-thanexpected performance in D2C brands and faster-than-expected recovery in core categories.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.