Goldman Sachs has reiterated a “Buy” rating for Marico, with a target price of ₹720. The brokerage commends Marico’s resilience in navigating a challenging operating environment, noting market share gains for its flagship Parachute oil brand and consistent growth in its Saffola portfolio, including foods and digital-first brands.
Recently, Marico reported a 20% increase in consolidated net profit to ₹433 crore for the September quarter, up from ₹360 crore a year ago. Consolidated revenue rose by 7.6% to ₹2,664 crore, with domestic revenue up 8.02% and international revenue rising 6.36%. The company continues to focus on diversifying its revenue mix, exploring new adjacent and ancillary businesses by leveraging core capabilities and competencies.
While Value-Added Hair Oils (VAHO) remains a weak segment, it is no longer a drag on overall performance. Goldman Sachs notes slight margin pressures due to higher-than-expected copra inflation but remains optimistic about the company’s profitability, aided by price-led growth in edible oils.
