Marico Limited (MARICO) AI Stock Analysis

• Market Cap: ₹1.01T
• Dividend Yield: 1.42%
• Average Volume (3M): 43.30K
• Price to Earnings (P/E): 54.6
• Beta (1Y): 0.54
• Revenue Growth: 22.56%
• EPS Growth: 4.73%
• Country: IN
• Employees: 1,834
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 3.50
• Shares Outstanding: 1,298,135,700
• 10 Day Avg. Volume: 38,273
• 30 Day Avg. Volume: 43,297
• PEG Ratio: 5.23
• Price to Book (P/B): 21.13
• Price to Sales (P/S): 7.75
• P/FCF Ratio: 69.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹900.00
• Price Target Upside: 15.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 13.87
• Revenue Forecast (FY): ₹135.36B

• Rating: 69 Neutral
• Price Target: ₹887.00 ▲(13.83% Upside)
• Action: Reiterated Date: 10/17/25
• Date: Action: Reiterated 10/17/25

Marico Limited's strong financial performance is the most significant factor, supported by solid revenue and profit growth and efficient management. Technical analysis shows a positive trend, though short-term indicators suggest caution. The high P/E ratio indicates a premium valuation, which may limit upside potential. Overall, the stock is well-positioned but may face valuation challenges.

Positive Factors

Revenue and Margin Strength

Consistent top-line growth paired with strong gross (50.26%) and net (15.04%) margins indicates durable core profitability. This supports long-term cash generation, funds brand investment and premiumization, and reduces reliance on volume alone to sustain earnings over the coming months.

Low Leverage and High ROE

A low debt-to-equity ratio and strong ROE reflect conservative financing and efficient capital use. This balanced capital structure provides financial flexibility for capex, M&A or marketing spend without stressing solvency, supporting resilience across economic cycles over months.

Strong Cash Conversion

High operating cash conversion and positive free cash flow demonstrate the company converts profits into cash reliably. That sustained cash generation underpins reinvestment, dividend capacity and working capital needs, reducing dependence on external funding for strategic initiatives.

Negative Factors

Commodity Input Exposure

Material reliance on commodity-linked inputs like coconut/copra and edible oils exposes margins to raw-material volatility. Over a 2-6 month horizon, adverse commodity moves or limited ability to fully pass costs through could pressure profitability and require pricing or mix adjustments.

Modest Equity / Asset Growth

Only modest growth in shareholders' equity suggests slower reinvestment or limited asset expansion. This can constrain capacity to scale distribution, production or new categories, potentially limiting market-share gains and long-term growth acceleration in core and adjacent segments.

Slower EPS Growth vs Revenue

EPS growth (~6.6%) trails stronger revenue growth, indicating the company has yet to fully convert top-line gains into per-share earnings. Persisting this gap can reflect margin pressure, higher costs, or dilution, reducing the pace at which shareholder returns compound over months.

Marico Limited Business Overview & Revenue Model

Company Description

Marico Limited, together with its subsidiaries, manufactures and markets consumer products. It offers coconut oils, hair oils, refined edible oils, anti-lice treatments, fabric care, immunity boosting and healthy foods, hair gels, hair serums, shampoos, hair creams and conditioners, deodorants, body lotion and gels, shower gels, hair relaxers and straighteners, fabric care, baby care, and skin care and male grooming products, as well as hygiene products. The company markets its products under the Parachute, Parachute Advansed, Nihar Naturals, Saffola, Saffola FITTIFY Gourmet, Saffola Immuniveda, Hair & Care, Coco Soul, Beardo, Just Herbs, Revive, Mediker, Livon, and Set-wet brand names in India; and under the Parachute, Parachute Advansed, Fiancée, Hair Code, Caivil, Hercules, Black Chic, Code 10, Ingwe, X-men, Mediker SafeLife, Isoplus, and Thuan Phat brand names internationally. Its distribution network comprises regional offices, carrying and forwarding agents, redistribution centers, and distributors. The company was incorporated in 1988 and is headquartered in Mumbai, India.

How the Company Makes Money

Marico generates revenue primarily through the sale of its consumer products across multiple categories. The company's key revenue streams include the sale of hair oils, which is one of its largest segments, as well as health foods and cooking oils. Marico employs a multi-channel distribution strategy, leveraging both traditional retail and modern trade formats to reach consumers effectively. Additionally, the company has expanded its footprint in international markets, contributing to its revenue growth through exports and local operations. Strategic partnerships with distributors and retailers enhance its market reach, while continuous product innovation and marketing efforts help to strengthen brand loyalty and drive sales.

Marico Limited Financial Statement Overview

Summary

Marico Limited shows strong financial performance with impressive revenue and profit growth, efficient operational management, and a solid balance sheet with low leverage. Despite minor fluctuations in cash flow growth, the company maintains a robust financial foundation.

Income Statement

Marico Limited demonstrated strong financial performance with a consistent increase in total revenue over the years, achieving a revenue growth rate of 12.21% in 2025. The company maintains a healthy gross profit margin of 50.26% and a net profit margin of 15.04% in 2025, reflecting robust profitability. The EBIT margin improved to 32.16%, and the EBITDA margin is at 19.75%, indicating efficient operational management. Overall, the income statement shows a positive growth trajectory and strong profitability.

Balance Sheet

The balance sheet of Marico Limited reflects a stable financial position with a debt-to-equity ratio of 0.14, indicating low leverage risk. The return on equity (ROE) stands at 40.98%, showcasing effective utilization of equity to generate profits. The equity ratio is 47.67%, suggesting a balanced capital structure with a strong equity base. However, the modest increase in stockholders’ equity suggests room for improvement in asset growth.

Cash Flow

Marico Limited's cash flow statement highlights a strong cash position, with positive free cash flow and a free cash flow to net income ratio of 0.74 in 2025, indicating efficient cash generation relative to profits. The company maintains a healthy operating cash flow to net income ratio of 0.84, demonstrating effective conversion of profits into cash. Despite a dip in free cash flow growth, the overall cash flow situation remains robust, supporting the company's operational and investment activities.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	114.47B	108.31B	95.73B	97.64B	94.52B	79.91B
Gross Profit	55.91B	54.43B	45.63B	44.13B	37.47B	34.63B
EBITDA	23.41B	21.39B	21.67B	19.53B	17.76B	16.97B
Net Income	16.69B	16.29B	14.81B	13.02B	12.25B	11.72B
Balance Sheet
Total Assets	0.00	83.38B	74.21B	69.46B	57.86B	55.10B
Cash, Cash Equivalents and Short-Term Investments	21.50B	21.52B	12.01B	13.38B	12.18B	15.07B
Total Debt	0.00	5.54B	5.28B	6.08B	4.79B	5.10B
Total Liabilities	-42.66B	40.72B	32.52B	29.90B	23.81B	22.52B
Stockholders Equity	42.66B	39.75B	38.32B	37.99B	33.48B	32.40B
Cash Flow
Free Cash Flow	0.00	12.02B	12.83B	12.37B	8.84B	19.26B
Operating Cash Flow	0.00	13.63B	14.36B	14.19B	10.16B	20.68B
Investing Cash Flow	0.00	-6.21B	1.76B	-8.65B	4.25B	-9.38B
Financing Cash Flow	0.00	-6.49B	-15.42B	-5.60B	-12.90B	-10.58B

Marico Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 779.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MARICO, the sentiment is Positive. The current price of 779.2 is above the 20-day moving average (MA) of 776.39, above the 50-day MA of 759.82, and above the 200-day MA of 726.90, indicating a neutral trend. The MACD of 10.41 indicates Positive momentum. The RSI at 49.39 is Neutral, neither overbought nor oversold. The STOCH value of 23.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:MARICO.

Marico Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TATACONSUM	71 Outperform	₹1.11T	76.67	―	0.70%	15.34%	14.67%
COLPAL	70 Outperform	₹602.60B	43.58	―	2.42%	-2.06%	-9.74%
MARICO	69 Neutral	₹1.01T	54.57	―	1.42%	22.56%	4.73%
DABUR	66 Neutral	₹864.85B	39.88	―	1.62%	2.68%	1.07%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GODREJAGRO	58 Neutral	₹116.44B	23.92	―	1.92%	5.24%	9.79%
GODREJIND	54 Neutral	₹316.09B	41.28	―	―	16.77%	137.93%

Marico Limited Corporate Events

Marico Issues 17,077 Equity Shares Under ESOP 2016, Minor Capital Increase

Marico Limited has allotted 17,077 equity shares of face value Re. 1 each under its 2016 Employee Stock Option Plan to eligible employees following the exercise of stock options. The issuance, which slightly increases the company’s paid-up share capital, is classified as not material, underscoring its routine nature as part of Marico’s ongoing share-based employee benefit practices.

Following this allotment, Marico’s paid-up equity share capital has risen from 1,29,81,18,654 shares to 1,29,81,35,731 shares, with the new shares ranking pari passu with existing equity. The move reflects continued use of equity-linked incentives to retain and reward employees without significantly diluting existing shareholders, and has been disclosed in line with SEBI regulations and stock exchange requirements.

Marico Completes Acquisition of 4700BC Popcorn Owner Zea Maize

Marico Limited has completed the acquisition of a 93.27% stake in Zea Maize Private Limited, the company that owns the premium popcorn brand 4700BC, from PVR INOX Limited, effective January 29, 2026, making Zea Maize a subsidiary. The deal signals Marico’s continued push into value-added snacking and premium food segments, broadening its branded consumer portfolio and potentially enhancing its competitive positioning in India’s rapidly growing packaged snacks market.

Marico to Acquire Majority Stake in Gourmet Snacking Brand 4700BC Owner Zea Maize

Marico Limited has signed definitive agreements to acquire 93.27% of Zea Maize Private Limited, owner of the premium gourmet snacking brand 4700BC, from PVR INOX Limited for up to Rs 226.83 crore in an all-cash deal, making Zea Maize a subsidiary upon completion. The transaction, expected to close within 30 days subject to customary conditions, is aimed at expanding Marico’s addressable market in value-added foods by adding a differentiated premium snacking brand to its portfolio, positioning the company more strongly in the fast-growing packaged gourmet snacks segment and giving it an option to acquire the remaining stake in Zea Maize after three years based on future performance.

Marico Files SEBI Dematerialisation Compliance Certificate for December Quarter

Marico Limited has submitted to the stock exchanges a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025. The certificate, issued by its registrar and share transfer agent MUFG Intime India Private Limited, confirms that all securities received for dematerialisation during the quarter were duly processed, either accepted or rejected, correctly reflected with the depositories, listed on the appropriate stock exchanges, and that corresponding physical certificates were cancelled and records updated within prescribed timelines, underscoring the company’s adherence to regulatory norms and robust share transfer processes for investors.

Marico Limited Achieves High Sustainability Ratings and Sets Bold ESG Targets

Marico Limited has achieved dual A- scores in the CDP 2025 assessments for Climate Change and Water Security, marking significant progress in its sustainability efforts. The company also secured a top position in the FMCG sector in the NSE ESG ratings, reflecting its commitment to responsible practices and ESG excellence. Marico has set ambitious ESG targets, including net-zero emissions by 2040 globally and by 2030 in India, and aims for 100% recyclable packaging by 2030. These achievements underscore Marico’s dedication to building a climate-resilient and inclusive future, enhancing its industry positioning and stakeholder value.

Marico Limited Achieves ‘Leader’ Status in ESG Rating

Marico Limited has been assigned an ESG rating of ’78’ for the fiscal year 2025 by NSE Sustainability Ratings & Analytics Limited, categorizing it as a ‘Leader’ in environmental, social, and governance performance. This independent assessment highlights Marico’s strong ESG practices, potentially enhancing its reputation and appeal to stakeholders focused on sustainable and responsible business practices.

Marico Limited Increases Share Capital Through ESOP Allotment

Marico Limited has announced the allotment of 63,494 equity shares under its Employee Stock Option Plan (ESOP) 2016, following the exercise of stock options by eligible grantees. This allotment has resulted in a slight increase in the company’s paid-up share capital. While this development is not considered material to the company’s overall financial position, it reflects Marico’s ongoing commitment to employee engagement and retention through stock-based incentives.