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The market expects Marico to do better than it ever has.
At today’s share price, buyers are assuming Marico grows about 16% a year, forever. Over the last ten years it actually grew about 9% a year. So the share price only makes sense if the business improves on its own track record. If it simply carries on as before, buyers today have paid for something they will not get.
- How it is valued: Discounted cash flow.
- What the price assumes: 16% growth, against 9% the model takes from its own record.
- Ten-year record: Between FY2018 and FY2026, Marico's revenue went from ₹6,333 crore to ₹13,611 crore — it compounded at about 10% a year over 8 years.
- Biggest swing factor: Copra prices. Main risk: Commodity spikes.
01Coconut oil, edible oil and beyond
Marico was founded in 1990 by Harsh Mariwala and is based in Mumbai. Parachute coconut oil, Saffola edible oils and oats, Nihar and Hair & Care are its core brands.
It has built a sizeable international business, especially in Bangladesh and Vietnam, and bought digital-first brands such as Beardo, Plix and True Elements to grow beyond its traditional categories.
02What the market is assuming
Work backwards from today's share price and you can see what buyers are quietly taking for granted. Here is the growth that price implies for Marico, next to what the model assumes from the company's own record.
The further apart these two numbers are, the bigger the bet a buyer at today's price is making.
03Marico's record, in plain numbers
Between FY2018 and FY2026, Marico's revenue went from ₹6,333 crore to ₹13,611 crore — it compounded at about 10% a year over 8 years. Net profit grew from ₹827 crore to ₹1,813 crore, about 10% a year — roughly in step with revenue. Net margin has been unusually stable, between 13.1% and 15.6% in every year shown. The latest year added 25.7% to revenue, well ahead of its own long-run pace.
Revenue and earnings per share in ₹, return on equity and leverage as ratios — all from the filed statements.
Revenue and net profit by year (₹ crore)
| Year | Revenue | Net profit | Margin |
|---|---|---|---|
| FY2018 | 6,333 | 827 | 13.1% |
| FY2019 | 7,334 | 1,135 | 15.5% |
| FY2020 | 7,315 | 1,043 | 14.3% |
| FY2021 | 8,048 | 1,199 | 14.9% |
| FY2022 | 9,512 | 1,255 | 13.2% |
| FY2023 | 9,764 | 1,322 | 13.5% |
| FY2024 | 9,653 | 1,502 | 15.6% |
| FY2025 | 10,831 | 1,658 | 15.3% |
| FY2026 | 13,611 | 1,813 | 13.3% |
04How Marico gets valued — and why
Discounted cash flowThis business is valued on the cash it is expected to generate, discounted back at its cost of capital — with growth taken from its own ten-year record rather than from guidance.
05What decides Marico's value
Copra prices
Coconut costs swing Parachute's margins.
Volume growth
Steady household demand underpins the core.
New brands
Foods and digital brands need to scale profitably.
Bangladesh and Vietnam
International markets add growth.
06What could go wrong
- Commodity spikes. Sharp rises in copra or oil costs squeeze margins.
- Bangladesh instability. Political or currency shocks hit a big market.
- Competition. Private labels and new brands pressure share.
07What the full Marico valuation shows
Sign in free to see the complete Marico valuation
- ✓Fair value per share — from a ten-year discounted cash flow, every step shown
- ✓The Workbench — change revenue growth, the discount rate or terminal growth and watch Marico's value move
- ✓Bull, base and bear cases — and exactly which assumptions move between them
- ✓Peer comparison — against Hindustan Unilever, Dabur and Godrej Consumer
- ✓Downloadable report — the full write-up, yours to keep
08Compare Marico with peers
The same valuation, run side by side.
Marico vs Hindustan UnileverA focused edible-oils and hair-care book against the FMCG benchmark.→Marico vs Dabur IndiaThe closest peer on category mix and rural exposure.→Marico vs Godrej ConsumerTwo mid-cap consumer names side by side.→09Questions people ask about Marico
What brands does Marico own?
Parachute, Saffola, Nihar, Hair & Care, Livon, Set Wet and digital brands such as Beardo and Plix.
How do coconut prices affect Marico?
Copra is Parachute's main raw material, so price swings move margins until Marico adjusts its own prices.
Marico or Dabur — which is better value?
Two mid-cap staples makers, compared side by side on their own page.
Is Marico overvalued?
At ₹900 the market is pricing in roughly 16% sustained growth, against the ~9% its own record supports. That is more than it has delivered, so the price is justified only if the business can hold a rate it has not previously sustained.
What is the intrinsic value of Marico?
It is computed from the filed financial statements using the method that fits this business (discounted cash flow), with every assumption shown alongside the result. The per-share figure and the full working are in the report.