Higher sales growth for Marico contingent on rural demand recovery

Brokerages have a mixed view on the stock; scale up of foods segment key for further gains

Pegged back by sluggish show in the rural segment, Marico’s December quarter performance for the 2022-23 financial year (Q3FY23) undershot Street expectations.

In a pre-quarterly results update, the company reported a low single digit consolidated sales growth while analysts expected mid-single digit growth and an improvement in the demand environment.

While the international business grew in high single digits despite a tough macro environment, the India business was the laggard as volume growth disappointed. While the urban market and premium range posted strong growth, inflationary trends dented rural demand.

The company believes that easing of commodity inflation, higher crop realisations,