Motilal Oswal Research has issued a buy recommendation for Marico with a target price of ₹1,000, representing a potential upside from the current market price of ₹838.95. According to the research report, the brokerage values the stock at 50x P/E on FY28 earnings. The recommendation is based on strong growth prospects and expected margin expansion across the company's portfolio.
Marico delivered robust financial performance in FY26, with 26 per cent revenue growth and 11 per cent APAT growth, significantly outperforming FMCG peers. As reported by The Hindu BusinessLine, the company's management commentary remains positive for FY27, with guidance of high-single-digit volume growth in India, double-digit consolidated revenue growth, and high-teen EBITDA growth. The strong performance has positioned the company well for continued growth in the coming fiscal year.
In India, Parachute is entering volume recovery mode as copra prices have corrected about 45 per cent from the peak. According to the research report, the company has already reduced prices by 15-20 per cent, which supported double-digit volume growth in Q1FY27. Value-added hair oils remained the standout performer, delivering about 20 per cent growth in FY26, and is expected to sustain over 20 per cent growth in Q1FY27. Marico expects its India business to deliver double-digit volume growth and more than 20 per cent revenue growth in Q1FY27.
Marico's digital-first portfolio is expected to achieve double-digit EBITDA margins by FY27 end, which should expand further to the teens by FY30. As reported by The Hindu BusinessLine, this margin expansion strategy is a key driver behind the brokerage's positive outlook on the stock. The company's focus on profitability across its portfolio is expected to support sustained margin improvement over the medium term.
Investec has included Marico among its large cap picks for Q1 FY27, expecting consumer staples to post double-digit revenue growth despite crude-linked cost pressure. The brokerage's preference for Marico, along with Varun Beverages, Titan, Eternal and United Spirits, spans FMCG staples, beverages, jewellery and quick commerce. Within the liquor sector, Investec expects Radico Khaitan to outperform peers, while forecasting over 20 percent growth for Titan, Nykaa and Vishal Mega Mart. This broad-based positive view reflects expectations that India's consumption recovery is broadening beyond staples into premium and discretionary categories.
