Stock to buy: Marico share price climbs 3% in a weak market; Motilal Oswal sees 24% further upside

Marico share price climbed nearly 3 per cent in morning trade on BSE on Wednesday, March 26, in an otherwise weak market. The FMCG stock opened at ₹630 against its previous close of ₹624.60 and rose 3 per cent to the level of ₹643. Around 11:45 AM, Marico share price traded 2.07 per cent higher at ₹637.50.

Marico share price trend

Marico shares have seen a decent gain of nearly 30 per cent over the last year. It hit a 52-week high of ₹736.10 on February 1 this year after hitting a 52-week low of ₹490.70 on April 4 last year.

On a monthly scale, the stock has seen a healthy recovery in March, rising 6 per cent after falling nearly 11 per cent in the previous month.

Motilal Oswal reiterates buy

Domestic brokerage firm Motilal Oswal Financial Services has reiterated a buy call on the stock with a target price of ₹775, implying a 24 per cent upside potential, after meeting with the company's management to discuss its growth across verticals, its long-term strategies, and industry trends.

"We model 11 per cent and 13 per cent revenue and EBITDA CAGR, respectively, during FY25-27E and reiterate our buy rating on the stock with a target price of ₹775, based on 50 times March 27E EPS," said the brokerage firm.

Motilal underscored that Marico is focused on achieving steady double-digit growth by gradually improving core category trajectories, rapidly scaling new-age businesses, and stable growth in international markets.

"The company is shifting its focus towards value-added products, particularly in foods and premium personal care, with a target of 20-25 per cent CAGR in these segments," said Motilal Oswal.

The brokerage firm observed while the demand for its key products, Parachute and Saffola, remains steady despite sharp price hikes, Marico’s Digital business is growing rapidly, with Plix and Beardo showing strong progress.

"The company is expanding its direct reach in General Trade (GT) through Project SETU and is benefiting from the growth of quick commerce (QC), which now accounts for nearly 3 per cent of India sales. Despite challenges in urban demand, the company’s diversified portfolio and investment in digital channels position it for sustained healthy growth," said Motilal Oswal.

The company anticipates sectoral tailwinds as its management has indicated to Motilal that the FMCG sector is currently witnessing a stable demand landscape.

"Rural demand is gradually improving, while urban demand is expected to recover over the next few quarters as inflation eases. Tax relief benefits can help drive consumption spending, particularly urban consumption. FY26 could see the benefits of supportive government schemes and a healthy crop season, which are expected to aid consumption," Motilal said.

Marico shares technical view

Some technical experts believe Marico stock is near its key resistance of ₹645, and investors should wait for it to close above this level.

Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, pointed out that Marico faces resistance near the R3 Camarilla monthly pivot at ₹640 and the previous swing high at ₹645.

"We recommend booking profits in the ₹635-645 zone and waiting for a pullback. A fresh upside move is likely only if Marico achieves a daily close above ₹645," said Patel.

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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.