Broker maintains Buy on Marico with ₹1,000 target on Parachute recovery and hair oil strength
Broker reiterates Buy on Marico (CMP ₹838.95, target ₹1,000), citing 26% revenue and 11% APAT growth in FY26. Copra prices down 45% aid Parachute volume recovery despite 15-20% price cuts; value-added hair oils grow 20%. International push cuts Bangladesh reliance to 45% of overseas mix. Valued at 50x FY28 P/E.
What happened
Broker maintains Buy on Marico with ₹1,000 target, citing strong FY26 results, Parachute volume recovery on lower copra prices, 20%+ hair oil growth, and
Key facts
- Target ₹1,000
- CMP ₹838.95
- 26% revenue growth FY26
- 11% APAT growth
- copra prices down 45%
- price cut 15-20%
- value-added hair oils 20% growth
- Bangladesh share 45% FY26
- 50x P/E FY28
Why this matters
Marico's international diversification cutting Bangladesh reliance to 45% of overseas mix signals a deliberate geographic de-risking that reshapes its emerging-markets expansion thesis.
What to watch
- Copra price reversal above pre-decline levels
- Q2/Q3 FY26 volume growth below high-single digits in Parachute
- Competitor price matching in coconut and hair oil categories
- Gross margin compression signals in earnings calls
- Bangladesh macro/FX shocks impacting overseas earnings
- Track monthly copra spot and futures to gauge margin durability against the 45% decline base
- Monitor quarterly Parachute volume prints for confirmation of elasticity-driven recovery
- Watch value-added hair oil segment share gains versus Bajaj/Dabur
- Assess international mix disclosures for Bangladesh de-risking progress