Buy Marico, target price Rs 750: Motilal Oswal Financial Services

Motilal Oswal Financial Services has a buy call on Marico Ltd. with a target price of Rs 750. The current market price of Marico is Rs 642.2. Marico, incorporated in 1988, is a Large Cap company with a market cap of Rs 83666.27 crore, operating in FMCG sector.

Marico's key products/revenue segments include Edible Oil, Others, Personal Care, Export Incentives, Scrap for the year ending 31-Mar-2024.

Financials

For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 2746 crore, up 2.46% from last quarter Total Income of Rs 2680 crore and up 9.23% from last year same quarter Total Income of Rs 2514.00 crore. Company has reported net profit after tax of Rs 433.00 crore in the latest quarter.

The company's top management includes Mr.Harsh Mariwala, Mr.Saugata Gupta, Mr.Nikhil Khattau, Mr.Rishabh Mariwala, Mr.Rajendra Mariwala, Mr.Ananth Sankaranarayanan, Mr.Milind Barve, Mr.Rajeev Vasudeva, Ms.Apurva Purohit, Ms.Nayantara Bali, Mr.Harsh Mariwala, Mr.Rajan Bharti Mittal, Mr.Saugata Gupta, Mr.Nikhil Khattau, Mr.Rishabh Mariwala, Mr.Rajendra Mariwala, Mr.Ananth Sankaranarayanan, Mr.Milind Barve, Mr.Rajeev Vasudeva, Ms.Apurva Purohit, Ms.Nayantara Bali, Mr.Rajan Bharti Mittal. Company has B S R & Co. LLP as its auditors. As on 30-09-2024, the company has a total of 129 Crore shares outstanding.

Investment Rationale
Marico saw steady demand trends in 3Q, driven by improving rural consumption and stable urban sentiment compared to 2QFY25. Domestic business delivered sequential improvement in underlying volume growth and sustained market share gains across key franchises. Consolidated revenue grew in the mid-teens YoY. MRCO is on track to deliver double-digit revenue growth on full year basis. The company remains committed to volume-driven revenue growth while being cautious about margins in the near term. Motilal Oswal Financial Services has a buy rating with a target price of Rs 750.

Promoter/FII Holdings
Promoters held 59.2 per cent stake in the company as of 30-Sep-2024, while FIIs owned 24.87 per cent, DIIs 10.94 per cent.