Marico Ltd. share price target

Marico’s Q4FY25 numbers were a mixed bag, led by sequential improvement in volume growth in the domestic business and revenue beating estimates, while OPM fell y-o-y and missed estimates.

The company reported robust revenue growth during the quarter on account of higher volume. However, margin and profitability were impacted by the higher cost of sales. Marico expects better outlook as its Food portfolio is expected to grow by 25% in FY26 owing to its scaling up of existing franchises and product innovations. Volume is expected to be better in FY26 as compared to FY25, indicating a favourable performance in the future. Its strong market share and new businesses...

Sales +3% above Bloomberg 4QFY25 consensus/our est. EBITDA was in line with cons. and 1% above our est

We upgrade Marico to BUY from Add, and raise Mar-26E TP by ~16% to Rs810 (from Rs700), given FY25 management aspirations have been already realized and execution is continually improving.

MRCO managed to deliver double-digit growth in FY25 led by Foods and Premium Personal Care revenue share increasing to ~22% in FY25 (11% in FY11) and double-digit INR sales growth in international business. Innovation funnel remains strong with portfolio diversification and scale up in Foods, D2C portfolio & B2C acquisitions. Beardo has ended FY25 with double-digit EBITDA margins whereas Plix has delivered low single digit EBITDA margin. MRCO plans to adopt the same strategy for scaling Digital-first franchises and targets double-digit margins by FY27. IBD is also focusing on improving mix by reducing...

Marico (MRCO) reported consol. revenue growth of 20% YoY (in line) in 4QFY25. Domestic revenue growth was 23% YoY, while volume growth was 7%. International growth was 11% YoY (16% CC growth).

We met with the management of Marico (MRCO) to discuss industry trends, the company’s growth across verticals, and its long-term strategies. MRCO is focused on achieving steady double-digit growth, driven by the gradually improving trajectory in its core categories, rapid scaling of new-age businesses, and stable growth in international markets.

Marico posted mixed performance in Q3FY25, led by a sequential improvement in volume growth in the domestic business and revenue beating estimates, while OPM fell y-o-y and missed estimates.

Compared to consensus, 3QFY25 sales were 2% lower (1% below our estimate) while EBITDA was 1%

Marico (MRCO) reported consol. revenue growth of 15% YoY (in line) in 3QFY25. Domestic revenue growth was 17% YoY, with 6% volume growth. International growth was 10% YoY (16% cc growth).

Versus consensus, sales miss 1%, EBITDA miss 2% on 15bps lower-than-expected margins. Parachute volumes +4% vs retail offtake +8%

Marico’s Q2FY2025 performance was largely in line with expectations, with consolidated revenues growing by 8% y-o-y (India biz volumes grew 5%) and OPM declining marginally by 48 bps y-o-y to 19.6%, adjusted PAT grew by ~9% y-o-y.

MB's 1QFY25 DPS is paid out, bringing trailing 12M payout ratio to 76%. Two cash repatriations were executed within a 30-day period

Marico Bangladesh's 1QFY25 DPS of BDT100 was recorded on 25 Aug'24. This equates to ~30% of MB's cash/share on balance sheet

We re-iterate a Buy on Marico with a revised PT of Rs. 821. Stock trades at 52x, 45x and 39x its FY25E, FY26E and FY27E earnings, respectively with near to medium-term growth prospects intact.

Similar to Marico, Indian power companies along with global MNCs are facing increased challenges in cash transfers from Bangladesh

Marico Bangladesh (MB), operating in Household and Personal Care, accounts for 11% of MRCO's consolidated sales

Compared to consensus, sales were in line and EBITDA 1% higher. Volumes were +4%, an acceleration vs +2% in the Mar'24 quarter