Jefferies has raised its target price on Marico to ₹800 from ₹780 and maintained a ‘Buy’ rating, citing the company’s strong all-round performance in Q4FY25, particularly the 7% volume growth in India and robust performance in international markets.
Marico posted revenue growth of nearly 20% YoY at ₹2,730 crore, with net profit rising 7.8% YoY to ₹345 crore. EBITDA came in at ₹458 crore, up 3.6% YoY. However, margins declined to 16.8% from 19.4%, largely due to gross margin pressure and stepped-up spending on brand building and promotions.
Jefferies noted that the India business performed strongly across categories, despite inflationary headwinds in select input materials. Meanwhile, the international business also delivered commendable constant currency growth, reinforcing Marico’s cross-geography execution strength.
While acknowledging the margin contraction, Jefferies remains optimistic about the company’s overall outlook, especially given its balanced focus on both core brands and future growth engines. The brokerage believes that Marico’s strategy of investing in digital-first brands, foods, and premium personal care is now beginning to yield results.
The board has recommended a final dividend of ₹7 per share for FY25, which adds to the stock’s shareholder value proposition.
Jefferies continues to see Marico as a high-quality compounder with a strong distribution moat, evolving portfolio, and disciplined capital allocation, and expects these factors to drive rerating over time.
Disclaimer: The above views are those of the brokerage and not the publication. Investors are advised to consult a certified financial advisor before making any investment decisions.
