Nomura has maintained a Buy rating on Marico, with a target price of ₹760, indicating a potential upside of 21.4% from the current market price of ₹625.90.
Key insights from Nomura’s report:
- Q2 Performance: Marico’s Q2 results were in line with the pre-quarterly update, showing improvement in demand. The company has not been significantly impacted by urban market weakness due to its focus on premium and mass segments.
- Price Hikes: Marico has implemented notable price increases, with Parachute witnessing a 10% hike and Saffola Oils a 15% hike from H2 FY25. These hikes are expected to boost growth with minimal volume impact.
- Product Segments: The foods, premium personal care, and digital brands divisions continue to demonstrate a healthy growth trajectory, reflecting strong consumer demand.
- VAHO Segment: Despite a weak quarter for VAHO (Value Added Hair Oils), Nomura notes that the segment may have reached a bottom, with potential for recovery.
Nomura’s target reflects optimism around Marico’s growth potential, driven by strategic price adjustments and resilience across key product categories.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should perform due diligence before making investment decisions