Morgan Stanley has maintained its ‘Equal-weight’ rating on Marico with a target price of ₹625, indicating a downside from the current market price of ₹660. The brokerage highlighted that Marico’s revenue growth for Q4FY25 is likely to be in the high teens, ahead of estimates pegged at 12% growth, and improving from 15% YoY growth in the previous quarter.
The revenue outperformance is primarily led by pricing actions. However, Morgan Stanley expects gross margins to remain under pressure and contract in line with Q3 levels, owing to inflationary trends in copra and vegetable oil prices. The margin pressure is expected to be largely in line with earlier estimates.
Management commentary remains upbeat, with guidance to maintain double-digit revenue growth for FY26, reflecting optimism about both volumes and pricing traction going forward.
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