The Marico Limited (NSE:MARICO) Annual Results Are Out And Analysts Have Published New Forecasts

Shareholders of Marico Limited (NSE:MARICO) will be pleased this week, given that the stock price is up 15% to ₹596 following its latest full-year results. It was a credible result overall, with revenues of ₹97b and statutory earnings per share of ₹11.43 both in line with analyst estimates, showing that Marico is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Marico

After the latest results, the 38 analysts covering Marico are now predicting revenues of ₹106.7b in 2025. If met, this would reflect a solid 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 11% to ₹12.67. Before this earnings report, the analysts had been forecasting revenues of ₹107.0b and earnings per share (EPS) of ₹12.63 in 2025. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹599. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Marico at ₹650 per share, while the most bearish prices it at ₹460. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Marico's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.4% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 10% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Marico is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Marico. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Marico analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Marico has 2 warning signs we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.