Marico Hits Record High: Brokerages See Rs 900 Target

Marico Reaches New Milestone

Shares of Fast-Moving Consumer Goods (FMCG) company Marico Ltd. surged to a new record high, breaking the significant resistance level of Rs 780. This rally is supported by a strong financial performance in recent quarters and a bullish outlook from several leading brokerages. The stock's momentum, which includes a notable bounce from its 200-day moving average, indicates a strong uptrend, attracting investor attention in a volatile market.

Stellar Financial Performance Fuels Rally

Marico's recent financial results have been a key driver of its stock performance. For the third quarter of fiscal year 2025-26, the company reported a 25% year-on-year increase in its consolidated profit after tax, which stood at Rs 486 crore. This growth was largely attributed to high single-digit volume increases from its domestic operations. Consolidated net sales for the same quarter grew by 26.59% year-on-year to Rs 3,537.00 crore, while standalone net sales rose by 25.24% to Rs 2,461.00 crore.

This performance follows a strong second quarter in FY26, where Marico posted a consolidated revenue growth of 31% year-on-year. The domestic business was a significant contributor, with revenue growing by 35% on the back of a 7% volume increase. The international business also showed healthy growth, expanding by 19% year-on-year.

Brokerages Maintain Bullish Stance

Market analysts and brokerage firms have responded positively to Marico's performance and growth strategy. Motilal Oswal has reiterated its 'Buy' rating, citing consistent performance and an intact growth strategy. The firm has set a target price of Rs 850, based on 50 times its September 2027 estimated earnings per share. Similarly, Citi has reaffirmed its 'Buy' rating and raised its target price from Rs 875 to Rs 900. Other firms like Anand Rathi have also upgraded the stock to a 'Buy'.

Key Growth Drivers and Strategic Initiatives

Analysts' optimism is rooted in several factors. Marico is expected to benefit from continued market share gains, accelerated growth in its foods and premium personal care portfolios, and healthy expansion in its international business. The company's strategic pricing actions, particularly for its Parachute brand due to rising copra costs, are expected to support revenue growth. Furthermore, Marico has launched 'Project SETU' to enhance its distribution reach and drive growth through a broader direct network, strengthening its market penetration.

Navigating Headwinds and Market Concerns

Despite the positive outlook, Marico faces certain challenges. Recent inflation in copra prices has put some pressure on gross margins, although this is expected to ease from the second half of FY26 onwards. The company's financials for Q2 FY26 were also marginally impacted by adjustments related to the GST transition. Additionally, some market data points to minor threats, such as a slight decrease in promoter shareholding from 58.94% to 58.93% in the December 2025 quarter and a reduction in FII/FPI shareholding in the last quarter. However, these factors have not significantly dampened the overall positive sentiment.

Marico's Vision for 2030

Looking ahead, Marico has set an ambitious long-term goal. Chairman Harsh Mariwala announced the company's aim to double its revenue and become a Rs 20,000 crore company by 2030. This vision is built on a clear roadmap focused on innovation, purposeful brand building, and operational excellence. Having crossed the Rs 10,000 crore revenue milestone in the 2024-25 fiscal year, the company is now gearing up for its next phase of transformative growth.

Market Data Snapshot

A quick look at Marico's key financial metrics provides further context for investors.

Conclusion

Marico's stock has demonstrated strong momentum, backed by robust financial results and a confident outlook from market experts. The company's strategic initiatives to expand its product portfolio and distribution network, coupled with its ambitious long-term revenue goals, position it well for future growth. While near-term margin pressures from commodity inflation remain a factor to watch, the overall consensus points towards a positive trajectory for the FMCG major.