Avendus has retained its Buy rating on Marico, raising the target price to ₹832 from ₹810, citing a ~5% upward revision in revenue estimates for FY26 and FY27. The brokerage highlighted near-term tailwinds from pricing improvements, recovery in the VAHO segment, and consistent traction in Marico’s non-oils portfolio as key positives.
However, it noted that margins are expected to remain under pressure through FY26, impacted by high raw material prices even as the revenue base continues to expand. EBITDA growth is also likely to lag topline growth during the year.
Looking ahead, Avendus expects a sharp margin rebound of around 20% by FY27 as the operating environment stabilizes and cost pressures ease.
Disclaimer: The views and recommendations in this article are those of Avendus and do not represent the opinion of this publication. Investors are advised to consult their financial advisors before making any investment decisions.
