Marico Q2 Results Review - Improving Growth Outlook; Stable Urban; Upgrade To 'Buy': Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.With most consumer companies flagging strained urban demand, ~50- 55% of Marico Ltd.’s India portfolio – foods, PPC, digital-first, premium Saffola edible oils – caters to upper/ upper-middle class urban consumer segments, relatively less impacted by income stress and high retail inflation. This enables high pricing power and superior growth in key brands. Parachute sustained volume growth (+4% in Q2) despite a recent price hike; the next hike of 4% (due to copra inflation) should also likely have a moderate impact on volume growth. In Saffola edible oil, despite the high 15% price increase, the brand’s premium consumer positioning should limit volume impact, leading to better realizations. In value added hair oil, interventions in trade spends and pricing could lead to a turnaround in value growth in the short term. The foods/ PPC/ digital-first businesses should continue to grow at 20%+, increasing their sales salience medium-term (20% currently). International business should maintain stable growth. Direct reach expansion under Project SETU should expand portfolio crossselling opportunities, aiding volume growth. While margins could remain subdued near-term, we expect a revival over FY26-27E driven by-pricing power, better mix andhigher direct reach efficiencies..Click on the attachment to read the full report:.Cipla Q2 Results Review - Goa OAI Resolution Remains The Imminent Trigger: Systematix.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Marico Q2 Results Review - Improving Growth Outlook; Stable Urban; Upgrade To 'Buy': Systematix

The stock has corrected by ~10% over the past month, and is at an attractive level in the brokerage's view.

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Marico Q2 Results Review - Improving Growth Outlook; Stable Urban; Upgrade To 'Buy': Systematix

The stock has corrected by ~10% over the past month, and is at an attractive level in the brokerage's view.

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