Motilal Oswal has reiterated its Buy rating on Marico, maintaining a target price of ₹825 per share. The brokerage noted that while the company’s growth scorecard remains intact, there is a slight delay in margin recovery due to ongoing input cost pressures.
Rising copra prices are expected to weigh on near-term margins, but Motilal remains optimistic about the company’s performance in the second half of FY26. The firm highlighted Marico’s ability to maintain revenue momentum, with volume growth sustaining at 9%.
Marico has guided for double-digit PAT CAGR over the next two years, with Motilal projecting an 11% PAT CAGR over FY25–FY28E. However, the brokerage has trimmed its FY26 earnings estimate due to recent copra inflation, while keeping FY27 and FY28 EPS estimates unchanged.
Overall, despite short-term margin pressures, the outlook for Marico remains constructive based on stable volume growth, margin recovery in H2, and a robust medium-term earnings profile.
Disclaimer: The views and recommendations in this article are those of Motilal Oswal and do not represent the opinion of this publication. Investors are advised to consult their financial advisors before taking any investment decisions.
