MARICO

Marico, a leading FMCG player, presents a compelling buy case, driven by a strategic pivot toward high-growth digital and premium segments. The company is uniquely positioned to navigate geopolitical headwinds, as roughly 50% of its raw material basket is copra, which is currently deflationary, unlike peers reliant on crude derivatives. This cost advantage is expected to expand EBITDA margins by 2% in FY27. While its legacy Parachute coconut oil business faces volume pressure, value growth remains robust, and the Value-Added Hair Oil segment is gaining significant market share. Crucially, Marico is successfully diversifying its revenue mix, aiming for foods and digital-first brands like Beardo and Plix to contribute 33% of domestic revenue. Recent acquisitions in health and wellness are scaling rapidly, supporting a projected 12-18% CAGR in revenue and earnings through FY28. With resilient demand in India and an 18% growth in international markets, Marico's transformation into a premium, digital-led consumer company offers strong long-term profitability and reduced risk, making it an attractive investment despite current macro uncertainties.