Jefferies has raised its price target for FMCG giant Marico Ltd. to Rs 1000 from Rs 960 after its strong first quarter earnings for the financial year 2027. The global brokerage has maintained a 'buy' rating on the stock, after calling Marico's growth "boringly consistent".
Jefferies said that Marico continues to deliver "best-in-class growth in revenue & profitability" after the company's consolidated revenue rose 22.9% to Rs 3,957 crore during the quarter, nearing the Rs 4,000-crore mark and bottom-line jumped 25%.
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Marico's "boring" consistency, is in stark contrast to its peers and makes it special, according to the brokerage. Jefferies pointed out that Earnings growth in Q1 accelerated to a multi-quarter high.
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The company remains confident with a clear goal of clamping down on the commodity-linked portion of the portfolio in favour of premium offerings, its focus also remains on fewer, bigger bets.
Marico Q1FY27 Highlights
Marico reported a stronger-than-expected performance for the June quarter, with net profit rising 25% year-on-year to Rs 630 crore, driven by healthy volume growth across its India business, resilient international demand and improved operating margins.
The FMCG major's consolidated revenue rose 22.9% to Rs 3,957 crore during the quarter, nearing the Rs 4,000-crore mark, while Ebitda increased 25% to Rs 819 crore. Ebitda margin expanded to 20.7% from 20.3% a year earlier.
The company outperformed Bloomberg consensus estimates across key parameters. Analysts had expected net profit of Rs 581 crore, revenue of Rs 3,940 crore, Ebitda of Rs 762 crore and an Ebitda margin of 19.4%.
The India business grew 21% year-on-year, while the international business expanded 29%. Domestic volumes grew 11%, the highest in the last 20 quarters, while the international business delivered 15% constant-currency growth.
Marico Share Price
Marico's stock was trading 1.85% lower at Rs 862.75 on the BSE on Wednesday.
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