Marico stock analysis and expert insights in detail

Stock overview

Ticker	MARICO
Sector	FMCG
Market Cap	₹ 93,420 Cr
CMP (Current Market Price)	₹ 723
52-Week High/Low	₹ 740/574
P/E Ratio	57x
Beta	1.1 (Moderate volatility)

About Marico

Marico Limited is a leading Indian FMCG company specialising in beauty and wellness products. Its flagship brands include Parachute, Saffola, Nihar, Livon, and Beardo. The company has a significant presence in India and operates in international markets such as Bangladesh, the Middle East, and Southeast Asia.

Primary growth factors for Marico

1. Product diversification

Marico has been expanding its product portfolio beyond traditional categories. The company has ventured into health foods, male grooming, and digital-first brands : 

1. Parachute Coconut Oil : Accounts for 33% of India revenues in the oil segment and registered a 22% value growth in Q4.
2. Saffola Edible Oil : Accounts for 19% of India revenues in the oil segment and registered a 26% value growth in Q4.
3. Hair Oils : Accounts for 19% of India revenues in the oil segment and registered a 1% value growth in Q4.

2. Digital Transformation

The company is leveraging digital platforms for marketing and sales, enhancing customer engagement and expanding its reach.

3. International Expansion

Marico’s international business contributes significantly to its revenue, with strong performance

Country	2025 Growth
Bangladesh	12%
Vietnam	4%
MENA	36%
South Africa	19%

Q4 FY25 Financial Performance

Metric	Q4 FY 25	Vs Q4 FY24	FY 2024-25	Vs FY 2023-24
Sales Volume	₹ 2730 cr	20%	₹ 10,831 cr	12%
Material Cost	₹ 1,404 cr	27%	₹ 5,388 cr	13%
ASP	₹  305	35%	₹ 1,128 cr	18%
PAT	₹ 343 cr	8%	₹ 1,629 cr	10%

1. Marico has delivered a healthy growth in both top line and bottom line in Q4 FY 25.
2. Marico’s FY 2024-25 has also been strong at a 12% revenue growth vs last year and 10% profit growth.
3. While the overall costs have also gone up, the growth in costs is largely in line with the overall revenue growth and therefore not hurting profitability at the moment.
4. With a new product line and consistent product innovation, Marico is poised to deliver a healthy top-line achievement in the upcoming quarters as well.

Detailed competition analysis for Marico

Company	Market Cap	Revenue	P/E Multiple	RoCE
Marico	₹ 93,400 cr	₹ 2,730 cr	57 x	45%
HUL	₹ 5,48,000 cr	₹ 15,670 cr	52 x	28%
Patanjali Foods	₹ 64,600 cr	₹ 9,103 cr	56 x	11%
AWL Agri Business	₹ 32,800 cr	₹ 18,200 cr	26 x	21%

Marico’s competitive landscape:

• Marico operates in a competitive FMCG landscape, holding its own against larger players through niche products and brand loyalty.
• While Marico trades at a reasonably high valuation, it is one of the few FMCG companies to deliver a consistent top-line and bottom-line growth in FY25. Hence, its valuation is justified at the moment.
• Investors should keenly watch out for any substantial increase in input costs, which could hurt their overall profitability. This is also something that is affecting many companies in the FMCG space, including the big giants like HUL and Nestle.

Company valuation insights: Marico

As per the Discounted Cash Flow analysis:

It estimates the intrinsic value of Marico shares based on expected future cash flows:

• Intrinsic Value Estimate: ₹820 per share
• Upside Potential: 15%
• WACC: 9.7%
• Terminal Growth Rate: 3.4%

Valuations are slightly on the higher side given high earnings growth, margin expansion and strong brand equity.

Major risk factors affecting Marico

1. Raw material price volatility: Fluctuations in the prices of key raw materials like copra can impact margins.
2. Intense competition: The FMCG sector is highly competitive, with constant pressure on pricing and innovation.
3. Regulatory changes: Changes in regulations can affect product formulations and marketing strategies.

Technical analysis of Marico

• Resistance: ₹750
• Support: ₹690
• Momentum: Bullish
• RSI (Relative Strength Index): 62 (Overbought)
• 50-Day Moving Average: ₹698
• 200-Day Moving Average: ₹705
• MACD: Positive crossover; bullish divergence

Technically bullish with potential for breakout above ₹750. Short-term consolidation is healthy. 

Marico stock recommendation by Ketan Mittal

Recommendation: Buy on dips / Long-term accumulate

Target Price: ₹810 (12-month horizon); ₹760 (6-month horizon);

Investment Horizon: 2–4 years for stable returns

Rationale

Recommend a Buy on Dips / Accumulate approach for Marico based on:

Strong growth in both revenue and profit

Controlled cost growth

Expansion in high-margin products

Expansion in the international market

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Conclusion

Marico Limited showcases a strong track record in the FMCG sector, with a focus on innovation, digital transformation, and international growth. The company’s strategic initiatives and robust financials make it a compelling investment opportunity.