Going ahead, the brokerage expects continued high profitability supported by improving business conditions and recent price hikes.
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Dolat Capital Report
Marico Ltd.'s results were in line with our estimate. The company reported 15.4% YoY revenue growth. India business reported 17.0% growth with a 6% volume increase (strongest in 13 quarters).
In Q3, Parachute Rigids reported volume growth of 3% YoY post absorbing ~1% impact of ml-age reduction in one key price point pack (3% volume growth in the base quarter).
Further, the brand revenue grew by 15% led by pricing interventions. To address the rise in copra prices, the company also implemented a price increase of ~5% towards end of Q3 FY25.
Given in line Q3 performance, we have maintained FY25/26/27E EPS at Rs 13.0/14.4/15.9. Going ahead, we expect continued high profitability supported by improving business conditions and recent price hikes. Valuing the stock at 50x FY27E EPS, we maintain our ‘Buy' rating and raise the target price to Rs 797 (earlier Rs 752) reflecting better performance compared to peers.
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