Street View- Margin recovery ahead for India's Marico; shares jump

Marico

17/11/2025 04:37

** India's Marico MRCO.NS rises 2.7% to 758.3 rupees after Q2 results

** 'Parachute' coconut oil maker reports 31% rise in revenue but a marginal 0.7% decline in profit after tax due to steep commodity inflation

VOLUMES OUTPERFORM; MARGINS SET TO EXPAND

** Antique Stock Broking (maintains 'buy'; raises PT to 900 rupees from 863 rupees): Q2 results an "outperformance" among consumer staple cos, with overall vol growth of 7% y/y

** Adds, despite sharp parachute oil price hikes to mitigate cost inflation in key commodity copra, volume decline was only 3%

** Centrum (maintains 'neutral'; raises PT to 785 rupees from 740 rupees)- margins are set to recover as copra prices correct from peak levels after new crop in March

** Adds, FY27 likely to see trend reversal from FY26, with revenue growth moderating and margins expanding

** Ambit Capital (maintains 'buy'; raises PT to 841 rupees from 810 rupees) says MRCO remains on track for much-needed diversification through aggressive scale up of non-oils portfolio

 (Reporting by Ananta Agarwal in Bengaluru)

 ((Ananta.Agarwal@thomsonreuters.com))