Nuvama retains Buy on Marico, sees 25% upside to ₹1,015
Nuvama expects Marico’s India volumes to grow at a high-single-digit pace in FY27, supported by premiumisation and expansion in foods and personal care. The FMCG company is targeting revenue above ₹15,000 crore in FY27 and ₹20,000 crore by FY30.
What happened
Nuvama retained its Buy rating on Marico with a ₹1,015 target, citing high-single-digit India volume growth, premiumisation and expansion in foods and personal
Key facts
- Nuvama target price: ₹1,015
- Implied upside: 25% from ₹810.25 closing price on 9 September
- India volume growth outlook: high single digit in FY27
- Q1 FY27 volume growth: 11%
- FY27 revenue target: over ₹15,000 crore
- FY30 revenue target: over ₹20,000 crore
- FY27 EBITDA-margin expansion target: 140-150 basis points
- FPI holding: 23.44%
- HDFC Mutual Fund holding: 2.48%
- LIC holding: 1.67%
Why this matters
Marico’s FY30 ₹20,000 crore ambition highlights foods and personal care as priority adjacency areas for partnerships, acquisitions or capability-led expansion.
What to watch
- Quarterly India volume growth sustaining high-single digits.
- Foods and personal-care revenue share, distribution additions and repeat-sales indicators.
- Gross-margin movement versus copra, crude and edible-oil input costs.
- Advertising-and-promotion spend as a percentage of sales and resulting EBITDA-margin trend.
- Progress against the FY27 ₹15,000 crore revenue ambition and management commentary on FY30 milestones.
- Accelerate general-trade and e-commerce distribution for foods, healthy snacking and premium personal-care SKUs.
- Increase brand investment and targeted promotions to convert premiumisation into repeat purchases rather than one-off trial.
- Use selective price-pack architecture and sourcing hedges to protect volumes and gross margins amid copra and edible-oil volatility.
- Prioritise adjacent-category launches or bolt-on acquisitions that can shorten the path to ₹20,000 crore revenue by FY30.