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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 531642 | NSE: MARICO

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
Edible Oils & Solvent Extraction7th 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

Basic Stock Data of Marico Ltd

Last Updated: June 20, 2024, 10:37 pm

Market Cap 81,482 Cr.
Current Price 628
High / Low667/486
Stock P/E55.0
Book Value 29.6
Dividend Yield1.51 %
ROCE43.4 %
ROE38.8 %
Face Value 1.00
PEG Ratio7.38

Competitors of Marico Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ruchi Infrastructure Ltd 273 Cr. 12.119.1/7.9038.8 8.550.00 %4.18 %3.93 % 1.00
Shanti Overseas (India) Ltd 17.1 Cr. 15.434.4/13.5 12.60.00 %11.9 %10.4 % 10.0
Pioneer Agro Extracts Ltd 4.03 Cr. 9.319.31/6.93 12.00.00 %1.34 %1.34 % 10.0
Jayant Agro Organics Ltd 899 Cr. 300311/18017.0 1811.67 %12.2 %10.0 % 5.00
Ashoka Refineries Ltd 4.32 Cr. 12.712.7/4.54216 8.020.00 %0.69 %0.73 % 10.0
Industry Average3,107.96 Cr116.3164.2175.850.18%7.99%6.40%6.38

Marico Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales2,1222,0122,5252,4192,4072,1612,5582,4962,4702,2402,4772,4762,422
Expenses1,7091,6932,0441,9961,9761,8152,0302,0632,0141,8471,9031,9791,909
Operating Profit413319481423431346528433456393574497513
OPM %19%16%19%17%18%16%21%17%18%18%23%20%21%
Other Income24102725222417194068463843
Interest710810101110151417172019
Depreciation36363333363736373943363942
Profit before tax394283467405407322499400443401567476495
Tax %21%20%22%22%22%20%24%23%25%24%23%24%22%
Net Profit312227365316317257377307333305436360386
EPS in Rs2.381.702.762.392.401.942.872.332.542.343.302.732.96

Marico Ltd Quarterly Chart

Marico Ltd Profit & Loss

Last Updated: May 29, 2024, 7:55 pm

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

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)26.09%24.14%16.07%23.59%12.17%1.97%36.76%-7.78%14.96%4.67%5.34%
Change in YoY Net Profit Growth (%)0.00%-1.95%-8.07%7.52%-11.42%-10.20%34.79%-44.54%22.74%-10.29%0.67%

Marico Ltd Growth

Compounded Sales Growth
10 Years:7%
5 Years:6%
3 Years:6%
TTM:-1%
Compounded Profit Growth
10 Years:12%
5 Years:6%
3 Years:8%
TTM:16%
Stock Price CAGR
10 Years:18%
5 Years:11%
3 Years:6%
1 Year:16%
Return on Equity
10 Years:37%
5 Years:37%
3 Years:37%
Last Year:39%

Last Updated: June 13, 2024, 7:46 am

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 Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-300.00-246.0068.00442.00-330.00-238.00-311.00-351.00-337.00-510.00-478.00-607.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Marico Ltd Free Cash Flow Chart

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

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters59.61%59.52%59.51%59.49%59.48%59.48%59.48%59.42%59.41%59.40%59.38%59.34%
FIIs24.98%25.92%25.55%25.11%25.16%25.00%25.07%24.97%24.96%25.91%25.69%25.55%
DIIs9.57%8.50%8.59%8.76%8.67%9.86%9.78%9.99%10.20%9.50%9.63%9.78%
Government0.09%0.09%0.09%0.09%0.09%0.09%0.10%0.10%0.10%0.10%0.10%0.10%
Public5.66%5.87%6.17%6.45%6.49%5.46%5.46%5.43%5.20%4.99%5.12%5.13%
Others0.10%0.10%0.10%0.11%0.11%0.11%0.09%0.11%0.11%0.11%0.08%0.11%
No. of Shareholders2,06,5992,72,8082,94,4603,32,2293,39,0173,43,6413,44,5753,47,5693,30,9073,08,0253,16,5793,18,556

Marico Ltd Shareholding Pattern Chart

No. of Marico Ltd Shareholders

Marico Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
UTI Flexi Cap Fund5,101,6461.07269.292,000,0002024-06-20155.08%
Franklin India Flexi Cap Fund4,100,0001.53216.422,000,0002024-06-20105%
DSP ELSS Tax Saver Fund2,119,9180.81111.92,000,0002024-06-206%
Franklin India Bluechip Fund - Dividend2,000,0001.41105.572,000,0002024-06-200%
Franklin India Bluechip Fund - Growth2,000,0001.41105.572,000,0002024-06-200%
Kotak Equity Arbitrage Fund - Regular Plan1,910,4000.28100.842,000,0002024-06-20-4.48%
Franklin India ELSS Tax Saver Fund1,800,0001.5895.012,000,0002024-06-20-10%
UTI Value Fund1,800,0001.1295.012,000,0002024-06-20-10%
UTI Dividend Yield Fund1,700,0002.5489.732,000,0002024-06-20-15%
ICICI Prudential Balanced Advantage Fund1,516,8000.1580.062,000,0002024-06-20-24.16%

Marico Ltd ROCE Trend

Marico Ltd EPS Trend

Marico Ltd Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)11.4610.089.509.087.91
Diluted EPS (Rs.)11.4310.059.499.087.91
Cash EPS (Rs.)12.8711.4510.8110.399.17
Book Value[Excl.RevalReserv]/Share (Rs.)32.3230.6726.4025.2623.53
Book Value[Incl.RevalReserv]/Share (Rs.)32.3230.6726.4025.2623.53
Revenue From Operations / Share (Rs.)74.8375.6973.7462.3956.71
PBDIT / Share (Rs.)16.8115.1513.7913.0612.35
PBIT / Share (Rs.)15.5813.9512.7111.9811.26
PBT / Share (Rs.)15.0213.5112.4111.8210.65
Net Profit / Share (Rs.)11.6410.259.739.318.09
NP After MI And SOA / Share (Rs.)11.4810.099.509.097.91
PBDIT Margin (%)22.4520.0118.7020.9321.77
PBIT Margin (%)20.8218.4217.2419.2019.86
PBT Margin (%)20.0617.8516.8318.9418.78
Net Profit Margin (%)15.5513.5313.1914.9214.25
NP After MI And SOA Margin (%)15.3413.3312.8714.5613.95
Return on Networth / Equity (%)38.6434.2736.5836.1733.77
Return on Capital Employeed (%)40.3839.8245.1444.2045.16
Return On Assets (%)19.9518.7421.1721.2720.54
Total Debt / Equity (X)0.090.120.100.100.11
Asset Turnover Ratio (%)1.341.381.501.341.29
Current Ratio (X)1.641.571.631.661.80
Quick Ratio (X)1.091.070.971.101.01
Inventory Turnover Ratio (X)3.083.313.942.982.27
Dividend Payout Ratio (NP) (%)0.0044.7097.5582.5987.75
Dividend Payout Ratio (CP) (%)0.0039.9487.6073.8377.17
Earning Retention Ratio (%)0.0055.302.4517.4112.25
Cash Earning Retention Ratio (%)0.0060.0612.4026.1722.83
Interest Coverage Ratio (X)29.7034.8945.6249.5631.86
Interest Coverage Ratio (Post Tax) (X)21.5824.6133.1835.9422.44
Enterprise Value (Cr.)63877.1061757.3064793.8552505.5035524.65
EV / Net Operating Revenue (X)6.626.336.816.524.86
EV / EBITDA (X)29.4631.6136.4231.1622.30
MarketCap / Net Operating Revenue (X)6.646.346.836.604.85
Retention Ratios (%)0.0055.292.4417.4012.24
Price / BV (X)16.7316.2919.4116.3811.73
Price / Net Operating Revenue (X)6.646.346.836.604.85
EarningsYield0.020.020.010.020.02

Marico Ltd Profitability Ratios (%)

Marico Ltd Liquidity Ratios

Marico Ltd Liquidity Ratios (%)

Marico Ltd Interest Coverage Ratios (%)

Marico Ltd Valuation Ratios

Fair Value

Fair Value: 641.20

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 2.10% compared to the current price 628

Intrinsic Value: 688.98

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 9.71% compared to the current price ₹628

Last 5 Year EPS CAGR: 7.45%

*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 has a high average Cash Conversion Cycle of 66.58, which may not be favorable.

Should I Buy Marico Ltd Share Now?

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Marico Ltd:
    1. Net Profit Margin: 15.55%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 40.38% (Industry Average ROCE: %)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 38.64% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 21.58
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.09
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 55.0 (Industry average Stock P/E: )
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.09
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

FAQ

What is the latest fair value of Marico Ltd?

The latest fair value of Marico Ltd is ₹641.20.

What is the Market Cap of Marico Ltd?

The Market Cap of Marico Ltd is 81,482 Cr..

What is the current Stock Price of Marico Ltd as on 21 June 2024?

The current stock price of Marico Ltd as on 21 June 2024 is ₹628.

What is the High / Low of Marico Ltd stocks in FY 2024?

In FY 2024, the High / Low of Marico Ltd stocks is 667/486.

What is the Stock P/E of Marico Ltd?

The Stock P/E of Marico Ltd is 55.0.

What is the Book Value of Marico Ltd?

The Book Value of Marico Ltd is 29.6.

What is the Dividend Yield of Marico Ltd?

The Dividend Yield of Marico Ltd is 1.51 %.

What is the ROCE of Marico Ltd?

The ROCE of Marico Ltd is 43.4 %.

What is the ROE of Marico Ltd?

The ROE of Marico Ltd is 38.8 %.

What is the Face Value of Marico Ltd?

The Face Value of Marico Ltd is 1.00.

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