Marico posted a 7.28 per cent increase in consolidated net profit at ₹343 crore in the quarter that ended March 31, 2025
Shares of Marico on Monday jumped 3.7 per cent to end at ₹723.25 on the BSE, after the FMCG major posted better-than-expected quarterly results, that buoyed analysts.
Marico posted a 7.28 per cent increase in consolidated net profit at ₹343 crore in the quarter that ended March 31, 2025. The Mumbai-headquartered firm reported a 19.84 per cent increase in revenue at ₹2,730 crore for the fourth quarter of FY25. The company’s board recommended a final dividend of ₹7 for for the FY25.
Emkay Global Research upgrades Marico to Buy from Add, and raise Mar-26E TP by about 16 per cent to ₹810 (from ₹700), given FY25 management aspirations have been already realised and execution is continually improving. “For its India business, we see double-digit sales growth momentum sustaining ahead, with the organic business maintaining high single-digit growth (gradual shift from price to volume-driven growth), while new initiatives remain accretive,” the domestic brokerage added.
According to company’s management, approximately 95 per cent of the portfolio gained or maintained market share and around 80 per cent sustained or improved penetration on a MAT basis.
“The improvement in market share gain, accelerated growth in Foods and Premium Personal Care, healthy growth in the international business, and normalisation of prices are expected to help Marico deliver a better revenue print in FY26,” said Motilal Oswal.
“FY25-FY28, in our view, the growth will be driven by strong performance of the domestic business led by Parachute (estimating MSD volume growth), Saffola edible oil (price hike led growth), VAHO (easing competitive intensity), and improving profitability of the foods and digital-first business and sustained double-digit CCG momentum in the international business (reported numbers to improve as currency headwinds subside),” said HDFC Securities.
According to JM Financial, Marico has navigated inflation cycle well by demonstrating strong pricing power in core and also has other margin levers (margin expansion in Foods/D2C & some recovery in VAHO) to cushion the impact on profitability. We continue to like Marico within our HPC coverage; execution on portfolio diversification remains strong and earnings visibility is relatively better.
Elara Securities maintains a constructive view on Marico, underpinned by its strong medium-term potential to deliver double-digit sales growth. This optimism is driven by a combination of strategic price increases, enhanced direct distribution capabilities, and robust momentum in its foods and premium personal care segments. “Additionally, as its new business verticals continue to scale, we expect upside to margin in the long-term, further reinforcing our positive stance,” it added.
Global brokerages such as Jefferies, Macquarie and Goldman Sachs and have also maintained their positive stance on Marico.
However, ICICI Securities downgraded the stock to Add from Buy. “The near-term margin to be impacted due to steep commodity price inflation; however, over the medium-term, margin to witness gradual recovery. After the stock’s 27 per cent one-year outperformance over Nifty, and at current valuation of 44x FY27E EPS, we downgrade to Add (from Buy),” it reasoned out.
Published on May 5, 2025
