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Nuvama keeps a buy view on Marico despite recent share pullback
The brokerage set a ₹1,015 target price, implying 25% upside from Marico's ₹810.25 BSE close on 9 September.
Marico shares have been under pressure after reaching a 52-week high of ₹889.95 on 31 July, and the stock has since corrected. LiveMint Markets notes Marico is down about 3% in September so far and had fallen nearly 5% in August after a four-month winning streak, while it remains up more than 5% year to date versus a 12% decline in the Sensex.
Nuvama Wealth Management reiterated its buy call in a report dated 8 September, citing the correction as a possible entry point. The firm set a 12-month target price of ₹1,015, which it calculated as 25% upside from Marico's 9 September closing price of ₹810.25 on the BSE, and it said it maintained the stance after meeting the company's MD and CEO Saugata Gupta.
The article also points to Marico's recent trading pattern, with the stock down more than 1% in Thursday's intraday trade on 10 September and positioned to extend losses for a second consecutive session. It adds that, by the end of the June quarter of FY27, HDFC Mutual Fund held 3,21,51,500 shares (2.48%), LIC held 2,16,20,975 shares (1.67%), and FPIs held 30,38,11,356 shares (23.44%), based on BSE shareholding data.
Looking ahead, Nuvama said Marico expects high single-digit India volume growth in FY27, after an 11% Q1FY27 volume increase that was a 20-quarter high. The brokerage also highlighted management expectations for double-digit revenue growth, revenue crossing ₹15,000 crore in FY27 and ₹20,000 crore by FY30, and potential EBITDA margin expansion of 140 to 150 basis points in FY27, with India and international growth targets framed in high single digits and mid-teens for international business on a constant currency basis.
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