Brokerage house HSBC has reiterated its ‘Buy’ rating on Marico while raising the target price to ₹850 from ₹800 earlier, stating that the company’s foods and digital-first portfolio are set to fuel medium-term growth. In its latest update, HSBC says that while Marico has several levers in its foods business, it expects Saffola oats and newly acquired Plix to lead the growth engine.
Marico has been actively expanding into high-growth categories like health and nutrition under its foods vertical, and D2C beauty and grooming through brands like Beardo and Plix. HSBC forecasts a 19% CAGR over FY25–28 for these new-age segments.
The brokerage notes that the direct-to-consumer brands under Marico have begun to achieve stability in topline and margin performance, as evidenced by Beardo’s trajectory toward double-digit EBITDA margins. It expects similar operational improvements from Plix and anticipates its integration to be margin-accretive.
HSBC’s confidence comes even as core segments like hair oils and value-added hair care remain under pressure from intense competition. However, the diversification strategy into premium personal care and functional foods is helping the company future-proof its growth, the note said.
