Buy Marico; target of Rs 958: Prabhudas Lilladher

Moneycontrol • 1 day ago

Original source

Key Investment Pillars

  • Marico's strong growth outlook is driven by a healthy demand environment, with the company raising its EBITDA growth guidance to mid-20s and advancing its Rs200bn revenue target to 2029.
  • The company's focus on AI adoption and GTM expansion of its premium portfolio through SETU 2.0 is expected to drive growth.
  • Sustained traction in Foods/FMCG and digital-first brands, along with improving margin trajectory, supports the investment thesis.
  • International business growth is expected to witness a marginal improvement, primarily driven by sequential recovery in Bangladesh and Southeast Asia.

Thesis Validation Checklist

  • Investors should watch for signs of sustained growth in Parachute and Saffola, as well as the performance of the company's premium portfolio and digital-first brands.
  • Margin expansion and improvement in EBITDA growth are key signals to validate the thesis.
  • The company's ability to navigate raw material price volatility and maintain its competitive position will be crucial.
  • Progress on SETU 2.0 and the company's AI adoption initiatives will be important to monitor.