NSEI:MARICO

Stock Analysis Report

Executive Summary

Marico Limited, together with its subsidiaries, manufactures and markets consumer products.

Rewards

Earnings are forecast to grow 10.18% per year

Earnings grew by 37.1% over the past year

Risk Analysis

High level of non-cash earnings

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.

Share Price & News

How has Marico's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MARICO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.0%

MARICO

-2.4%

IN Personal Products

-0.4%

IN Market


1 Year Return

-10.9%

MARICO

1.6%

IN Personal Products

11.1%

IN Market

Return vs Industry: MARICO underperformed the Indian Personal Products industry which returned 1.6% over the past year.

Return vs Market: MARICO underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

MARICOIndustryMarket
7 Day-3.0%-2.4%-0.4%
30 Day-13.6%-7.3%-1.5%
90 Day-14.9%-5.2%3.3%
1 Year-9.3%-10.9%2.8%1.6%13.0%11.1%
3 Year17.6%12.4%38.2%32.6%25.3%18.6%
5 Year84.0%70.8%61.5%52.3%35.4%23.1%

Price Volatility Vs. Market

How volatile is Marico's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Marico undervalued compared to its fair value and its price relative to the market?

31.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MARICO (₹302.2) is trading above our estimate of fair value (₹144.1)

Significantly Below Fair Value: MARICO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MARICO is poor value based on its PE Ratio (31.7x) compared to the Personal Products industry average (23.4x).

PE vs Market: MARICO is poor value based on its PE Ratio (31.7x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: MARICO is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: MARICO is overvalued based on its PB Ratio (11x) compared to the IN Personal Products industry average (1.9x).


Next Steps

Future Growth

How is Marico forecast to perform in the next 1 to 3 years based on estimates from 31 analysts?

10.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MARICO's forecast earnings growth (10.2% per year) is above the savings rate (6.5%).

Earnings vs Market: MARICO's earnings (10.2% per year) are forecast to grow slower than the Indian market (20.4% per year).

High Growth Earnings: MARICO's earnings are forecast to grow, but not significantly.

Revenue vs Market: MARICO's revenue (9.7% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: MARICO's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MARICO's Return on Equity is forecast to be high in 3 years time (34.9%)


Next Steps

Past Performance

How has Marico performed over the past 5 years?

14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MARICO has a high level of non-cash earnings.

Growing Profit Margin: MARICO's current net profit margins (16.6%) are higher than last year (12.5%).


Past Earnings Growth Analysis

Earnings Trend: MARICO's earnings have grown by 14% per year over the past 5 years.

Accelerating Growth: MARICO's earnings growth over the past year (37.1%) exceeds its 5-year average (14% per year).

Earnings vs Industry: MARICO earnings growth over the past year (37.1%) exceeded the Personal Products industry 7.7%.


Return on Equity

High ROE: MARICO's Return on Equity (35.3%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Marico's financial position?


Financial Position Analysis

Short Term Liabilities: MARICO's short term assets (₹39.1B) exceed its short term liabilities (₹19.3B).

Long Term Liabilities: MARICO's short term assets (₹39.1B) exceed its long term liabilities (₹2.2B).


Debt to Equity History and Analysis

Debt Level: MARICO's debt to equity ratio (10.1%) is considered satisfactory.

Reducing Debt: MARICO's debt to equity ratio has reduced from 24.8% to 10.1% over the past 5 years.

Debt Coverage: MARICO's debt is well covered by operating cash flow (302.5%).

Interest Coverage: MARICO earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: MARICO has a high level of physical assets or inventory.

Debt Coverage by Assets: MARICO's debt is covered by short term assets (assets are 10.9x debt).


Next Steps

Dividend

What is Marico's current dividend yield, its reliability and sustainability?

2.15%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%0.6%markettop25%2.5%industryaverage1.3%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: MARICO's dividend (2.15%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: MARICO's dividend (2.15%) is low compared to the top 25% of dividend payers in the Indian market (2.51%).


Stability and Growth of Payments

Stable Dividend: MARICO's dividend payments have been volatile in the past 10 years.

Growing Dividend: MARICO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.9%), MARICO's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MARICO's dividends in 3 years are forecast to be covered by earnings (64.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Saugata Gupta (51yo)

13.1yrs

Tenure

₹92,191,648

Compensation

Mr. Saugata Gupta has been the Chief Executive Officer of Marico Limited since April 2013 and also has been its Managing Director since March 31, 2014. Mr. Gupta serves as Chairman of Board of Management a ...


CEO Compensation Analysis

Compensation vs Market: Saugata's total compensation ($USD1.29M) is about average for companies of similar size in the Indian market ($USD1.16M).

Compensation vs Earnings: Saugata's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Saugata Gupta
MD, CEO & Executive Director13.1yrs₹92.19m0.046% 178.4m
Vivek Karve
Chief Financial Officer5.8yrs₹25.52m0.0039% 15.1m
Hemangi Ghag
Compliance Officer & Company Secretary2.3yrs₹5.24mno data
Harshraj Mariwala
Founder & Chairman5.8yrs₹59.60m2.18% 8.5b
Sanjay Mishra
Chief Operating Officer of India Sales & Bangladesh Business4.3yrsno datano data
Sudhakar Mhaskar
Chief Technology Officer0yrsno datano data
Pawan Agrawal
Executive VP and Head of Finance & Investor Relations0yrsno datano data
Gaurav Mediratta
Chief Legal Officer0yrsno datano data
Koshy George
Chief Marketing Officer1.1yrsno datano data
Amit Prakash
Chief Human Resource Officer1.8yrsno datano data

3.3yrs

Average Tenure

Experienced Management: MARICO's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Saugata Gupta
MD, CEO & Executive Director13.1yrs₹92.19m0.046% 178.4m
Harshraj Mariwala
Founder & Chairman5.8yrs₹59.60m2.18% 8.5b
Hema Ravichandar
Non Executive & Independent Director14.6yrs₹3.55mno data
Nikhil Khattau
Non-Executive & Independent Director 17.6yrs₹3.65mno data
Rajeev Bakshi
Non-Executive & Independent Director16.6yrs₹3.30mno data
Rajendra Mariwala
Non-Executive Director 14.6yrs₹3.10m0.31% 1.2b
Basavanhalli Nagesh
Non-Executive Independent Director 9.6yrs₹3.65mno data
Rishabh Mariwala
Non-Executive Director2.8yrs₹2.90m1.93% 7.5b
Ananth Sankaranarayanan
Independent Director2.7yrs₹2.90mno data
Sanjay Dube
Additional Independent Director0.08yrsno datano data

7.7yrs

Average Tenure

56yo

Average Age

Experienced Board: MARICO's board of directors are considered experienced (7.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Marico Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Marico Limited
  • Ticker: MARICO
  • Exchange: NSEI
  • Founded: 1988
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: ₹389.994b
  • Shares outstanding: 1.29b
  • Website: https://marico.com

Number of Employees


Location

  • Marico Limited
  • Grande Palladium
  • 7th Floor
  • Mumbai
  • Maharashtra
  • 400098
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
531642BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 1999
MARICONSEI (National Stock Exchange of India)YesEquity SharesININRNov 1999

Biography

Marico Limited, together with its subsidiaries, manufactures and markets consumer products. The company offers coconut oil, hair oils, refined edible oils, anti-lice treatments, fabric care, functional and other processed foods, hair creams and gels, hair serums, shampoos, shower gels, hair relaxers and straighteners, deodorants, and other related consumer products and by-products. It markets its products under the Parachute, Parachute Advansed, Nihar, Nihar Naturals, Saffola, Hair & Care, Revive, Mediker, Livon, and Set-wet brand names in India; and under the Parachute, Parachute Advansed, Fiancée, Hair Code, Caivil, Hercules, Black Chic, Code 10, Ingwe, X-men, and Thuan Phat brand names internationally. The company’s distribution network comprises regional offices, carrying and forwarding agents, redistribution centers, and distributors. Marico Limited was incorporated in 1988 and is headquartered in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 12:54
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.