ICICI Direct has given Hold recommendation for Marico with a target price of Rs. 530 in its research report issued on May 06, 2022

ICICI Direct’s research report on Marico

Marico is one of the major FMCG companies present in hair oil, edible oil, foods & personal care segment. Major brands include Parachute, Saffola, Nihar, Hair & Care, Set Wet, Livon & Beardo. Marico has an overall distribution network of more than 5 million outlets and direct reach of ~1 million outlets. Through its stockist network, it reaches 58000 villages • With high gross margins of 45-50%, the company is able to spend 8-9% of its sales on advertisements to support new categories and products.

Outlook

We change our rating on the stock from BUY to HOLD rating. We value the stock at Rs 530 on ascribing 45x FY24 earnings multiple.

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