Marico Q4 Review: Systematix Ups Target Price on Double-Digit Growth Outlook — Should You Buy?

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.

Systematix Report

According to Systematix, Marico Ltd. remains in a sweet spot of robust volume growth supplemented by double-digit topline growth, with-

1. superior pricing power and brand equity helping it sustain unprecedented price hikes in key portfolios, and
2. new high-growth businesses propping up volumes.

With pricing easing in FY27 as copra moderates, the brokerage expect volume growth to pick up meaningfully. Value added hair oil's volume-led turnaround is gathering steam with Project SETU benefiting range-selling and direct reach share; this should also contribute to better margins going forward.

The new businesses should collectively add ~6-7 points to India topline growth, increasing their sales salience medium-term (to ~27%) and contributing significantly to headline volume growth.

Similar to past cycles (FY17, FY20, FY24), Systematix expects significant margin rebound over FY27E-FY28E driven by the easing copra cycle, and supported by-

1. better product mix (new growth businesses, VAHO) and
2. higher direct reach efficiencies.

This remains one of the few large-cap names growing earnings at FY26- FY28E CAGR of ~18% yet still available at FY28E P/E of 42 times.

Click on the attachment to read the full report:

ALSO READ: L&T, M&M, Quess Corp, APL Apollo, Petronet LNG, Poonawalla Fincorp And More Q4 Review — Check Targets, Upside, Key Drivers

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.

Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.