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Last Updated on: 04 March, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Marico Ltd

About the Company - Marico Ltd

Marico Ltd. is a Public Limited Listed company incorporated on 13/10/1988 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L15140MH1988PLC049208 and registration number is 049208. Currently Company is involved in the business activities of Manufacture of hair oil, shampoo, hair dye etc. (includes manufacture of shampoos, hair sprays, hair fixers, hair oils, hair creams, hair dyes and bleaches and preparations for permanent waving or straightening of the hair etc.). Company’s Total Operating Revenue is Rs. 7500.00 Cr. and Equity Capital is Rs. 129.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Personal Care7th Floor, Grande Palladium, Mumbai Maharashtra 400098investor@marico.com
http://www.marico.com
Management
NamePosition Held
Mr. Harsh MariwalaChairman & Non-Exe.Director
Mr. Saugata GuptaManaging Director & CEO
Mr. Rajendra MariwalaNon Executive Director
Mr. Rishabh MariwalaNon Executive Director
Mr. Nikhil KhattauLead Independent Director
Ms. Hema RavichandarIndependent Director
Mr. Nayantara BaliIndependent Director
Mr. Ananth SankaranarayananIndependent Director
Mr. Milind BarveIndependent Director
Mr. Apurva PurohitIndependent Director
Mr. Rajeev VasudevaIndependent Director
Mr. Rajan Bharti MittalIndependent Director

Marico Ltd. Share Price Update

Share PriceValue
Today₹519.80
Previous Day₹522.45

Basic Stock Data of Marico Ltd

Market Cap 68,399 Cr.
Current Price 529
High / Low595/463
Stock P/E46.7
Book Value 32.6
Dividend Yield1.82 %
ROCE41.9 %
ROE35.8 %
Face Value 1.00

Data Source: screener.in

Competitors of Marico Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gillette India Ltd 21,295 Cr. 6,5347,336/4,13554.4 3161.30 %52.0 %38.5 % 10.0
Hindustan Unilever Ltd (HUL) 5,64,654 Cr. 2,4032,770/2,34754.8 2141.62 %26.6 %20.5 % 1.00
Zydus Wellness Ltd 10,054 Cr. 1,5801,721/1,42535.5 8180.32 %5.93 %6.40 % 10.0
Ador Multi Products Ltd 18.0 Cr. 38.575.0/29.1 9.070.00 %66.4 %50.7 % 10.0
Procter & Gamble Hygiene and Health Care Ltd 51,715 Cr. 15,93219,250/13,10168.4 3240.68 %101 %80.6 % 10.0
Industry Average129,547.20 Cr5,297.5042.62336.210.78%50.39%39.34%8.20

Marico Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales1,9892,1222,0122,5252,4192,4072,1612,5582,4962,4702,2402,4772,476
Expenses1,6001,7091,6932,0441,9961,9761,8152,0302,0632,0141,8471,9031,979
Operating Profit389413319481423431346528433456393574497
OPM %20%19%16%19%17%18%16%21%17%18%18%23%20%
Other Income-6241027252224171940684638
Interest87108101011101514171720
Depreciation33363633333637363739433639
Profit before tax342394283467405407322499400443401567476
Tax %20%21%20%22%22%22%20%24%23%25%24%23%24%
Net Profit273312227365316317257377307333305436360
EPS in Rs2.042.381.702.762.392.401.942.872.332.542.343.302.73

Marico Ltd Quarterly Chart

Ador Multi Products Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales3,9804,5964,6875,7336,0175,9186,3227,3347,3158,0489,5129,7649,615
Expenses3,4953,9703,9394,8634,9664,7595,1856,0095,8466,4597,8317,9547,638
Operating Profit4856267488701,0511,1591,1371,3251,4691,5891,6811,8101,977
OPM %12%14%16%15%17%20%18%18%20%20%18%19%21%
Other Income307058599396851039510798144195
Interest42583423211716405034395673
Depreciation73877784959089131140139139155160
Profit before tax4005526958221,0291,1491,1171,2571,3741,5231,6011,7431,939
Tax %20%26%27%29%30%29%26%10%24%21%22%24%
Net Profit3224065045857238118271,1311,0431,1991,2551,3221,487
EPS in Rs2.583.073.764.455.516.196.318.637.919.089.4810.0711.33
Dividend Payout %14%16%46%28%77%57%67%55%85%83%97%45%

Marico Ltd Profit & Loss Yearly Chart

Marico Ltd Growth

Compounded Sales Growth
10 Years:8%
5 Years:9%
3 Years:10%
TTM:-1%
Compounded Profit Growth
10 Years:13%
5 Years:10%
3 Years:7%
TTM:17%
Stock Price CAGR
10 Years:17%
5 Years:9%
3 Years:10%
1 Year:6%
Return on Equity
10 Years:36%
5 Years:37%
3 Years:37%
Last Year:36%

Marico Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital61646464129129129129129129129129129
Reserves1,0821,9171,2961,7601,8882,1972,4142,8462,8943,1113,2193,6704,087
Borrowings785872680428331239312352338511479608493
Other Liabilities6898549258731,0101,0591,2171,5691,6031,6751,8502,3933,455
Total Liabilities2,6173,7072,9653,1253,3583,6234,0724,8964,9645,4265,6776,8008,164
Fixed Assets8571,6708881,0761,0501,0851,1101,3001,3961,6121,7602,2462,703
CWIP4014843371127455824396764
Investments2961523112845446085434507338548281,0961,363
Other Assets1,4241,7381,7621,7631,7271,9192,3923,1012,7772,9363,0503,3914,034
Total Assets2,6173,7072,9653,1253,3583,6234,0724,8964,9645,4265,6776,8008,164

Marico Ltd Reserves and Borrowings Chart

Marico Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 3974326606658186495161,0621,2142,0071,0161,419
Cash from Investing Activity -352-830-202-186-203-12559-367-22-933441-928
Cash from Financing Activity -119442-339-625-601-574-567-698-1,147-1,058-1,290-560
Net Cash Flow-7444119-14714-518-34516167-69

Marico Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days191617111515202627182538
Inventory Days14617315113911019319014715710810694
Days Payable739695798010710398108109101112
Cash Conversion Cycle92937371461011067476173020
Working Capital Days3526929103854434162021
ROCE %24%24%29%38%44%45%42%42%43%43%43%42%

Marico Ltd Financial Efficiency Indicators Chart

Marico Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters59.61%59.61%59.52%59.51%59.49%59.48%59.48%59.48%59.42%59.41%59.40%59.38%
FIIs24.04%24.98%25.92%25.55%25.11%25.16%25.00%25.07%24.97%24.96%25.91%25.69%
DIIs10.06%9.57%8.50%8.59%8.76%8.67%9.86%9.78%9.99%10.20%9.50%9.63%
Government0.18%0.09%0.09%0.09%0.09%0.09%0.09%0.10%0.10%0.10%0.10%0.10%
Public6.01%5.66%5.87%6.17%6.45%6.49%5.46%5.46%5.43%5.20%4.99%5.12%
Others0.10%0.10%0.10%0.10%0.11%0.11%0.11%0.09%0.11%0.11%0.11%0.08%
No. of Shareholders2,07,7102,06,5992,72,8082,94,4603,32,2293,39,0173,43,6413,44,5753,47,5693,30,9073,08,0253,16,579

Marico Ltd Shareholding Pattern Chart

No. of Marico Ltd Shareholders

Marico Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
UTI Flexi Cap Fund53700461.18288.13
UTI Dividend Yield Fund18000003.1696.58
UTI Value Fund18000001.396.58
ICICI Prudential Balanced Advantage Fund13716000.1573.59
Nippon India ETF Nifty Next 50 Junior BeES12912951.9469.56
ICICI Prudential Nifty Next 50 Index Fund11721772.162.89
SBI Nifty Next 50 ETF6415151.9434.56
ICICI Prudential Multi Asset Fund6000000.1332.19
Tata Arbitrage Fund5736000.3930.9
Axis Business Cycles Fund5711031.1730.76

Marico Ltd ROCE Trend

Marico Ltd EPS Trend

Marico Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)10.089.509.087.918.64
Diluted EPS (Rs.)10.059.499.087.918.63
Cash EPS (Rs.)11.4510.8110.399.179.79
Book Value[Excl.RevalReserv]/Share (Rs.)30.6726.4025.2623.5323.16
Book Value[Incl.RevalReserv]/Share (Rs.)30.6726.4025.2623.5323.16
Revenue From Operations / Share (Rs.)75.6973.7462.3956.7156.85
PBDIT / Share (Rs.)15.1513.7913.0612.3511.08
PBIT / Share (Rs.)13.9512.7111.9811.2610.06
PBT / Share (Rs.)13.5112.4111.8210.659.75
Net Profit / Share (Rs.)10.259.739.318.098.78
NP After MI And SOA / Share (Rs.)10.099.509.097.918.64
PBDIT Margin (%)20.0118.7020.9321.7719.48
PBIT Margin (%)18.4217.2419.2019.8617.69
PBT Margin (%)17.8516.8318.9418.7817.15
Net Profit Margin (%)13.5313.1914.9214.2515.43
NP After MI And SOA Margin (%)13.3312.8714.5613.9515.18
Return on Networth / Equity (%)34.2736.5836.1733.7737.44
Return on Capital Employeed (%)39.8245.1444.2045.1640.75
Return On Assets (%)18.7421.1721.2720.5422.69
Total Debt / Equity (X)0.120.100.100.110.11
Asset Turnover Ratio (%)1.381.501.341.291.35
Current Ratio (X)1.571.631.661.801.86
Quick Ratio (X)1.070.971.101.011.04
Inventory Turnover Ratio (X)3.313.942.982.272.52
Dividend Payout Ratio (NP) (%)44.7097.5582.5987.7552.87
Dividend Payout Ratio (CP) (%)39.9487.6073.8377.1747.30
Earning Retention Ratio (%)55.302.4517.4112.2547.13
Cash Earning Retention Ratio (%)60.0612.4026.1722.8352.70
Interest Coverage Ratio (X)34.8945.6249.5631.8635.73
Interest Coverage Ratio (Post Tax) (X)24.6133.1835.9422.4429.30
Enterprise Value (Cr.)61757.3064793.8552505.5035524.6544346.25
EV / Net Operating Revenue (X)6.336.816.524.866.05
EV / EBITDA (X)31.6136.4231.1622.3031.03
MarketCap / Net Operating Revenue (X)6.346.836.604.856.07
Retention Ratios (%)55.292.4417.4012.2447.12
Price / BV (X)16.2919.4116.3811.7314.97
Price / Net Operating Revenue (X)6.346.836.604.856.07
EarningsYield0.020.010.020.020.02

Marico Ltd Profitability Ratios (%)

Marico Ltd Liquidity Ratios

Marico Ltd Liquidity Ratios (%)

Marico Ltd Interest Coverage Ratios (%)

Marico Ltd Valuation Ratios

Fair Value of Marico Ltd Stock

Fair Value: ₹554.95

The stock is undervalued by 4.90% compared to the current price ₹529

*Investments are subject to market risks

Strength and Weakness of Marico Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 38.25%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 27.67, which is a positive sign.
  3. The company has higher reserves (2,490.85 cr) compared to borrowings (494.46 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (6.31 cr) and profit (190.62 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 11.99 and average Dividend Yield of 18.48%.
  2. The stock has a high average Cash Conversion Cycle of 66.58, which may not be favorable.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Marico Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE