Marico Q2 FY27 update: operating profit seen up mid-20s

Marico Limited said on 5 October that Q2 FY27 consolidated revenue will grow in double digits and operating profit in the mid-twenties. The stock hit Rs 814.00, then closed at Rs 790.00. Q2 FY27 business update (unaudited): - Revenue: double-digit growth; India underlying volume growth touching double digits - Operating profit: mid-twenties growth, about Rs 700 crore on Q2 FY26's Rs 560 crore - Parachute volumes up early-teens; value-added hair oils up in the twenties; Saffola Oils volumes slightly down - International: constant-currency growth in the teens - Copra about 35% below peak; crude-linked costs edging up Q1 FY27: revenue Rs 3,957 crore, up 23%; PAT Rs 630 crore, up 25%. Q2 results: date not yet out; last year 14 November. Marico [][***** shares closed at Rs 783.59 on 5 October on StockGro (NSE Rs 790.00), 11 percent below the NSE 52-week high. P/E 53.97; sector P/E near 30. My view: hold, not a fresh entry. Mid-twenties matches Q1's pace (operating profit up 25%), so it is not an acceleration, and it rides a soft base: Q2 FY26's margin fell 350 bps to 16.1%. Against Q2 FY25 that is up about 34 percent, or 16 percent a year. Copra helps; crude-linked costs edge up. At 54x trailing and 45x FY27E (Nuvama, target Rs 1,015), the guide is in the price, and the day's gain faded. Holders stay into Q2 results. Fresh money waits for about Rs 700 crore of operating profit and management's Q3 view on crude-linked costs. Support Rs 780.00 (5 October low); resistance Rs 814.00 (5 October high). My exit is a close below Rs 780.00, or Q2 operating profit growth under 20 percent. Disclosure: Vijay Kumar Gupta, SEBI Registered Research Analyst, INH000020226, Vijay Gupta Advisory. SEBI registration and NISM certification do not guarantee performance or assure returns. Securities markets are subject to market risks. No holdings in the subject company.