Marico’s share price fell by more than 4% on Tuesday as a result of political upheaval in Bangladesh, which accounts for a large portion of the company’s worldwide operations. Marico shares fell by up as 4.43% to ₹642.55 on the BSE.
The political crisis in Bangladesh erupted after days of large violent protests, and Prime Minister Sheikh Hasina resigned on Monday and fled the country for a safer place. The army will now form a provisional government.
Bangladesh contributes approximately 12% to Marico’s consolidated revenue and about 44% to its international revenue. In its Q1FY25 results presentation, the company projected a reduction in Bangladesh’s share of total overseas revenue to below 40% by the end of fiscal year 2027, down from 51% in FY22.
Marico’s Q1 Results
Marico, the creator of Parachute Coconut Oil, reported in-line profitability for the first quarter of FY25, with a small increase in net profit and topline, fueled by a 4% increase in domestic business volume.
Marico’s net profit in Q1FY25 increased by 8.66% to ₹464 crore from ₹427 crore the previous year. Revenue increased by 6.7% to ₹2,643 crore from ₹2,477 crore in the previous year. India’s revenues climbed by 7.38% year on year to ₹1,926 crore.
Marico’s medium-term goal for the International business is to achieve double-digit revenue growth and double-digit constant currency growth. It anticipates operating margins to rise over the next three years due to leverage benefits and portfolio premiumization across both India and International operations.
Should you purchase Marico stock?
Analysts praised Marico’s sales guidance and margin improvement goals, raising their prices on the FMCG stock.
“Marico is experiencing strong growth in domestic business execution on both the topline and margins. We admire its top-line concentration, but we believe that any more margin expansion would constrain execution. We forecast a 10% topline/12% profits CAGR over FY24-27E. Given the improved performance, we increased our target multiple to 47x from 42x, representing a 10% premium to its historical average forward P/E,” said Nitin Gupta, Senior Research Analyst at Emkay Global Financial Services.
The brokerage company maintained a ‘Reduce’ recommendation on Marico shares and increased the June 2025 target price to ₹700 per share from ₹630.
Marico’s operating performance in the first quarter of FY25 exceeded Antique Stock Broking’s expectations. Following the Q1 results, the brokerage business boosted its target multiple to 50x PER (formerly 45x) based on improved performance on management objectives. It anticipates 12% and 15% CAGRs in revenue and earnings for FY24-27E, respectively.
The brokerage firm anticipates Marico’s performance to improve as a result of distribution-led growth in the core portfolio, as well as improved profitability and contribution from food and luxury personal care items. Marico’s share price objective has been lifted from ₹721 to ₹801 per share, with a ‘Buy’ recommendation.
Nuvama Institutional Equities upgraded FY26E EPS forecasts by 4% and the target PE to 45x from 40x, citing the company’s increased market share and pricing strength in the main brand. The analyst maintained a ‘Buy’ recommendation for Marico shares and increased the target price to ₹780 from ₹640 before.
Adverse macroeconomic conditions in Bangladesh, which contribute 11-12% of the company’s revenue, are among the key concerns.
Marico’s share price has increased by more than 22% in the previous three months, and Motilal Oswal feels the high valuation will continue given earnings acceleration. Marico stock is valued at 50x June 2026 EPS forecasts, resulting in a target price of ₹750 per share and a ‘Buy’ recommendation.
Marico shares were down 3.69% to ₹647.60 on the BSE at 10:45 a.m.
Read Also: Marico climbs 3% following positive Q4 updates as macroeconomic conditions improve
