Marico has received a maintained Buy rating from Nuvama Securities with a target price of ₹900, supported by strong operational performance and strategic positioning across key markets.

Strong VAHO Performance Drives Growth

The company demonstrated robust growth in its Value Added Hair Oil (VAHO) segment, recording impressive growth of 29% in Q3FY26. This strong performance in the premium hair care category reflects Marico's successful product positioning and market penetration strategies.

Regional Operations and Market Exposure

Marico's Bangladesh operations continue to show stable momentum, providing consistent contribution to the company's international business. The limited Middle East revenue exposure of 3-4% offers some protection against regional geopolitical uncertainties.

Cost Structure and Pricing Strategy

Nuvama highlighted the potential benefits from a significant ~35% correction in copra prices, which represents a key raw material for the company's coconut oil-based products. This substantial cost reduction could enable Marico to implement strategic price cuts, potentially boosting volume growth and market share expansion.

Risk Monitoring and Market Outlook

While maintaining its positive outlook, Nuvama continues to monitor Middle East tensions for possible impacts on raw material and packaging cost inflation. The brokerage's cautious approach reflects awareness of potential supply chain disruptions and cost pressures that could emerge from regional instability.

The maintained Buy rating with ₹900 target price reflects Nuvama's confidence in Marico's operational execution and strategic positioning across its key markets, balanced against ongoing monitoring of external risk factors.

Marico Limited has allotted 9,348 equity shares under its Employee Stock Option Plan 2016 (ESOP 2016) on March 11, 2026. The Securities Committee of the Board of Directors approved the allotment through a resolution passed on the same date, enabling eligible grantees to exercise their stock options under various schemes of ESOP 2016.

Share Capital Enhancement

The allotment has resulted in an increase in the company's paid-up share capital, reflecting the expansion of equity base through employee participation.

Allotment Details

The share allotment was executed in two separate tranches under the ESOP 2016 framework, each with distinct exercise prices reflecting different grant periods.

First Tranche

Second Tranche

Regulatory Compliance

The allotment complies with Regulation 10(c) of the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The company has provided comprehensive disclosures as required under these regulations. Additionally, this intimation fulfills requirements under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Marico clarified that the share allotment is not material in nature to the company. The newly issued equity shares will be listed on both BSE Limited and the National Stock Exchange of India Limited, carrying the ISIN number INE196A01026. All allotted shares will rank pari-passu with existing equity shares of the company, ensuring equal rights and privileges for all shareholders.