Marico shares: MOFSL sees 22% in this FMCG stock - Check share price target
Management also aims to push the revenue contribution from these food and digital-first brands to roughly 33% of its total domestic revenue, up from the current 25%, it noted.
- Apr 1, 2026,
- Updated Apr 1, 2026 8:41 AM IST
Motilal Oswal Financial Services (MOFSL) remains positive about the Marico Ltd market prospects. While other consumer companies grapple with rising import costs and volatile raw material prices, Marico is positioned with a low risk of an earnings cut.
According to the MOFSL note, copra makes up about 50% of the company's raw material basket. Fortunately for the FMCG major, copra is currently experiencing a deflationary trend, with prices tumbling by 40% from their peak.
“Consequently, Marico is among the few companies where operating margins are projected to expand in FY27,” MOFSL said
“Management has guided a base case EBITDA margin expansion of 150-200bp in FY27, and we believe this guidance remains achievable in the current environment,” MOFSL added.
Management also aims to push the revenue contribution from these food and digital-first brands to roughly 33% of its total domestic revenue, up from the current 25%, it noted.
MOFLS noted that Marico's India operations posted single-digit volume growth alongside an impressive 30% value growth in the first nine months of FY26. “The international business (~25% of revenue) grew ~18% in 9MFY26, driven by broad-based performance across geographies,” it added.
Looking at the upside, MOFSL has reiterated its ‘Buy’ rating on Marico. The brokerage has set a target price of Rs 900 for the stock, which implies a solid 22% upside from current levels. This valuation is premised on a 50x price-to-earnings multiple estimated for FY28.
“The impact of ongoing geopolitical uncertainties remains limited, given low exposure to MENA (less than 5% of revenue),” MOFSL added.
Motilal Oswal Financial Services (MOFSL) remains positive about the Marico Ltd market prospects. While other consumer companies grapple with rising import costs and volatile raw material prices, Marico is positioned with a low risk of an earnings cut.
According to the MOFSL note, copra makes up about 50% of the company's raw material basket. Fortunately for the FMCG major, copra is currently experiencing a deflationary trend, with prices tumbling by 40% from their peak.
“Consequently, Marico is among the few companies where operating margins are projected to expand in FY27,” MOFSL said
“Management has guided a base case EBITDA margin expansion of 150-200bp in FY27, and we believe this guidance remains achievable in the current environment,” MOFSL added.
Management also aims to push the revenue contribution from these food and digital-first brands to roughly 33% of its total domestic revenue, up from the current 25%, it noted.
MOFLS noted that Marico's India operations posted single-digit volume growth alongside an impressive 30% value growth in the first nine months of FY26. “The international business (~25% of revenue) grew ~18% in 9MFY26, driven by broad-based performance across geographies,” it added.
Looking at the upside, MOFSL has reiterated its ‘Buy’ rating on Marico. The brokerage has set a target price of Rs 900 for the stock, which implies a solid 22% upside from current levels. This valuation is premised on a 50x price-to-earnings multiple estimated for FY28.
“The impact of ongoing geopolitical uncertainties remains limited, given low exposure to MENA (less than 5% of revenue),” MOFSL added.