Going ahead, Marico expects to drive volume-led growth and market share gains across its portfolios, aided by distribution expansion, aggressive cost controls and adequate investment in market development and brand building. Over the medium term, Marico expects to deliver 13-15% revenue growth on the back of 8-10% domestic volume growth in the domestic business and double-digit constant currency growth in the international business. We will aim to maintain consolidated operating margin above the threshold of 19% over the medium term, it added.

The company pegs gross margin to expand by 200-250 bps and operating margin to move up by more than 100 bps in FY24 with easing RM prices, aggressive cost management and a more favorable portfolio mix.

“We believe Marico is well-placed to drive a mid-to-high teens operating profit growth in FY24. Valuations are not as demanding with the stock now trading below its five-year average,” says JM Financial in a report. The brokerage has given “Buy” call on the stock with a price target of ₹585 for a period of 12 months.

Prabhudas Lilladher has upgraded the stock to “Accumulate” with a target price of ₹550 from ₹523 estimated earlier. “We believe demand revival in Parachute, VAHO and sustained growth in emerging segments in foods and personal care will enable double digit sales growth. We believe MRCO is well placed given benign prices of copra and stability in product pricing environment; sustained traction in new launches in Foods with entry in high growth categories of Peanut Butter & Munchies; and increased focus on digital brands in HPC,” it says in a note.

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