Nuvama says 'Buy' Marico; check 12-month price target, stock performance, shareholding pattern

Nuvama Wealth Management has upgraded Marico to a 'Buy' rating, citing the company's pivot towards premium products as a key driver of significant growth. Marico shares have been under pressure lately, hitting a 52-week high of ₹ 889.95 on July 31, but a recent correction may provide an opportunity to buy the stock. On a monthly scale, Marico shares have declined 3% in September and 5% in August, snapping a four-month winning streak. However, year-to-date, the FMCG stock is still up more than 5% compared to a 12% fall in the equity benchmark Sensex. The stock touched a 52-week low of ₹ 690.40 on September 29, last year. Nuvama Wealth Management's report, issued on September 8, maintained a buy call on Marico shares, with a target price of ₹ 1,015, implying an upside potential of 25% from the current stock price of ₹ 810.25. The brokerage firm expects high single-digit India volume growth in FY27, with an 11% rise in Q1FY27 volume being a 20-quarter high. Marico's MD, Saugata Gupta, reiterated a double-digit revenue growth, with revenue crossing ₹ 15,000 crore in FY27 and ₹ 20,000 crore by FY30. Nuvama also highlighted that Marico's India business may sustain high single-digit volume growth, while international business may grow in mid-teens in constant currency terms. The company's target is to reduce the mass segment's market share to 56% in FY27 and 50% by FY30, while increasing the premium segment's market share from 37% in FY26 to 50% in FY30. According to shareholding pattern data on the BSE, HDFC Mutual Fund held 3,21,51,500 shares, equivalent to 2.48% stake, in the company by the end of the June quarter of FY27, while Life Insurance Corporation of India (LIC) held 2,16,20,975 shares, or 1.67% stake, in the company. Foreign portfolio investors (FPIs) cumulatively held 30,38,11,356 shares, or 23.44% stake in the company by the end of the above-mentioned quarter.