Analyst Estimates: Here’s What Brokers Think Of Marico Limited (NSE:MARICO) After Its Second-Quarter Report

Shareholders of Marico Limited (NSE:MARICO) will be pleased this week, given that the stock price is up 16% to ₹890 following its latest quarterly results. The result was positive overall – although revenues of ₹39b were in line with what the analysts predicted, Marico surprised by delivering a statutory profit of ₹4.24 per share, modestly greater than expected. This is an important time for investors, as they can track a company’s performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from Marico’s 39 analysts is for revenues of ₹154.5b in 2027. This reflects a credible 4.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 10% to ₹17.15. Before this earnings report, the analysts had been forecasting revenues of ₹153.5b and earnings per share (EPS) of ₹16.88 in 2027. The consensus analysts don’t seem to have seen anything in these results that would have changed their view on the business, given there’s been no major change to their estimates.

See our latest analysis for Marico

The analysts reconfirmed their price target of ₹962, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company’s valuation. The most optimistic Marico analyst has a price target of ₹1,052 per share, while the most pessimistic values it at ₹704. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Marico shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 9.1% growth on an annualised basis. That is in line with its 9.2% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 11% per year. It’s clear that while Marico’s revenue growth is expected to continue on its current trajectory, it’s only expected to grow in line with the industry itself.

The Bottom Line

The most obvious conclusion is that there’s been no major change in the business’ prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year’s earnings. We have estimates – from multiple Marico analysts – going out to 2029, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we’ve spotted with Marico .

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