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Marico

NSEI:MARICO
Snowflake Description

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

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MARICO
NSEI
₹471B
Market Cap
  1. Home
  2. IN
  3. Household
Company description

Marico Limited, together with its subsidiaries, manufactures and markets consumer products in India and internationally. The last earnings update was 74 days ago. More info.


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MARICO Share Price and Events
7 Day Returns
1.7%
NSEI:MARICO
0.3%
IN Personal Products
0.8%
IN Market
1 Year Returns
15.5%
NSEI:MARICO
2.1%
IN Personal Products
-0.7%
IN Market
MARICO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Marico (MARICO) 1.7% 8% -3.5% 15.5% 41.4% 261%
IN Personal Products 0.3% -0.2% -5.1% 2.1% 40.8% 144.8%
IN Market 0.8% 2.1% 5.8% -0.7% 41.2% 72.5%
1 Year Return vs Industry and Market
  • MARICO outperformed the Personal Products industry which returned 2.1% over the past year.
  • MARICO outperformed the Market in India which returned -0.7% over the past year.
Price Volatility
MARICO
Industry
5yr Volatility vs Market

MARICO Value

 Is Marico undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Marico to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Marico.

NSEI:MARICO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 28 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.4%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:MARICO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Personal Products Unlevered Beta Simply Wall St/ S&P Global 0.68
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.68 (1 + (1- 35%) (0.69%))
0.787
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.8 * 8.6%)
14.43%

Discounted Cash Flow Calculation for NSEI:MARICO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Marico is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:MARICO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 14.43%)
2019 8,160.27 Analyst x15 7,131.23
2020 10,015.18 Analyst x17 7,648.55
2021 11,411.03 Analyst x17 7,615.62
2022 12,567.79 Est @ 10.14% 7,329.92
2023 13,744.27 Est @ 9.36% 7,005.23
2024 14,956.20 Est @ 8.82% 6,661.65
2025 16,218.12 Est @ 8.44% 6,312.79
2026 17,543.33 Est @ 8.17% 5,967.51
2027 18,944.14 Est @ 7.98% 5,631.39
2028 20,432.08 Est @ 7.85% 5,307.79
Present value of next 10 years cash flows ₹66,611.67
NSEI:MARICO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹20,432.08 × (1 + 7.55%) ÷ (14.43% – 7.55%)
₹319,399.80
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹319,399.80 ÷ (1 + 14.43%)10
₹82,972.78
NSEI:MARICO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹66,611.67 + ₹82,972.78
₹149,584.45
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹149,584.45 / 1,290.86
₹115.88
NSEI:MARICO Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:MARICO represents 1.00425x of BSE:531642
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.00425x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 115.88 x 1.00425
₹116.37
Value per share (INR) From above. ₹116.37
Current discount Discount to share price of ₹366.10
= -1 x (₹366.10 - ₹116.37) / ₹116.37
-214.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Marico is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Marico's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Marico's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:MARICO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹6.96
BSE:531642 Share Price ** BSE (2019-04-18) in INR ₹364.55
India Personal Products Industry PE Ratio Median Figure of 17 Publicly-Listed Personal Products Companies 23.18x
India Market PE Ratio Median Figure of 2,738 Publicly-Listed Companies 16.33x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Marico.

NSEI:MARICO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:531642 Share Price ÷ EPS (both in INR)

= 364.55 ÷ 6.96

52.35x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Marico is overvalued based on earnings compared to the IN Personal Products industry average.
  • Marico is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Marico's expected growth come at a high price?
Raw Data
NSEI:MARICO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 52.35x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 28 Analysts
16.7%per year
India Personal Products Industry PEG Ratio Median Figure of 7 Publicly-Listed Personal Products Companies 3.2x
India Market PEG Ratio Median Figure of 584 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

NSEI:MARICO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 52.35x ÷ 16.7%

3.13x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Marico is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Marico's assets?
Raw Data
NSEI:MARICO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹23.60
BSE:531642 Share Price * BSE (2019-04-18) in INR ₹364.55
India Personal Products Industry PB Ratio Median Figure of 20 Publicly-Listed Personal Products Companies 3.26x
India Market PB Ratio Median Figure of 3,628 Publicly-Listed Companies 1.11x
NSEI:MARICO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:531642 Share Price ÷ Book Value per Share (both in INR)

= 364.55 ÷ 23.60

15.44x

* Primary Listing of Marico.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Marico is overvalued based on assets compared to the IN Personal Products industry average.
X
Value checks
We assess Marico's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Personal Products industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Personal Products industry average (and greater than 0)? (1 check)
  5. Marico has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MARICO Future Performance

 How is Marico expected to perform in the next 1 to 3 years based on estimates from 28 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
16.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Marico expected to grow at an attractive rate?
  • Marico's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Marico's earnings growth is positive but not above the India market average.
  • Marico's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:MARICO Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:MARICO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 28 Analysts 16.7%
NSEI:MARICO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 28 Analysts 11.9%
India Personal Products Industry Earnings Growth Rate Market Cap Weighted Average 14.1%
India Personal Products Industry Revenue Growth Rate Market Cap Weighted Average 10.8%
India Market Earnings Growth Rate Market Cap Weighted Average 18.5%
India Market Revenue Growth Rate Market Cap Weighted Average 11.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:MARICO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 28 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:MARICO Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 93,307 12,992 12,955 25
2020-03-31 83,153 11,382 11,271 28
2019-03-31 73,987 9,664 9,395 29
NSEI:MARICO Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 72,047 8,977
2018-09-30 69,680 8,710
2018-06-30 66,675 8,382
2018-03-31 63,222 5,545 8,145
2017-12-31 61,567 8,026
2017-09-30 59,437 7,710
2017-06-30 58,470 7,665
2017-03-31 59,178 6,487 7,986
2016-12-31 60,119 7,773
2016-09-30 61,255 7,914
2016-06-30 61,363 7,640
2016-03-31 60,173 8,176 7,115

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Marico's earnings are expected to grow by 16.7% yearly, however this is not considered high growth (20% yearly).
  • Marico's revenue is expected to grow by 11.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:MARICO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 28 Analyst Estimates (S&P Global) See Below

All data from Marico Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:MARICO Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 10.17 11.30 9.50 25.00
2020-03-31 8.76 9.46 8.20 28.00
2019-03-31 7.28 7.53 7.10 26.00
NSEI:MARICO Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 6.96
2018-09-30 6.76
2018-06-30 6.50
2018-03-31 6.32
2017-12-31 6.15
2017-09-30 5.94
2017-06-30 5.94
2017-03-31 6.21
2016-12-31 6.03
2016-09-30 6.12
2016-06-30 5.91
2016-03-31 5.53

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Marico is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Marico's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Marico has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MARICO Past Performance

  How has Marico performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Marico's growth in the last year to its industry (Personal Products).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Marico's year on year earnings growth rate has been positive over the past 5 years.
  • Marico's 1-year earnings growth exceeds its 5-year average (11.9% vs 11.5%)
  • Marico's earnings growth has exceeded the IN Personal Products industry average in the past year (11.9% vs 8.4%).
Earnings and Revenue History
Marico's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Marico Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:MARICO Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 72,046.70 8,977.40 11,267.70
2018-09-30 69,680.30 8,710.00 10,912.60
2018-06-30 66,675.00 8,382.10 10,669.00
2018-03-31 63,221.80 8,144.90 10,590.70
2017-12-31 61,566.90 8,026.00 10,500.80
2017-09-30 59,437.30 7,709.70 10,476.80
2017-06-30 58,469.50 7,664.70 10,641.00
2017-03-31 59,177.90 7,985.90 11,001.00
2016-12-31 60,119.30 7,773.00 12,286.70
2016-09-30 61,255.10 7,913.60 12,472.50
2016-06-30 61,363.10 7,640.20 12,287.60
2016-03-31 60,173.20 7,114.80 11,003.10
2015-12-31 60,512.68 6,963.92 14,134.97
2015-09-30 59,472.79 6,584.64 13,627.68
2015-06-30 58,930.74 6,260.05 13,102.18
2015-03-31 57,329.80 5,734.50 10,084.10
2014-12-31 55,774.49 5,521.91 12,426.98
2014-09-30 53,268.78 5,276.77 12,133.47
2014-06-30 49,260.95 5,129.33 11,375.90
2014-03-31 46,865.20 4,853.80 11,422.10
2013-12-31 43,168.27 5,175.09 12,343.62
2013-09-30 42,824.68 4,844.34 12,751.10
2013-06-30 44,100.04 4,667.91 13,536.18
2013-03-31 45,961.80 3,958.60 13,080.30
2012-12-31 45,365.46 3,816.98 12,833.68
2012-09-30 44,225.82 3,635.21 12,425.23
2012-06-30 42,268.70 3,559.43 11,432.72

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Marico has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Marico used its assets more efficiently than the IN Personal Products industry average last year based on Return on Assets.
  • Marico's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Marico's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Personal Products industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Marico has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MARICO Health

 How is Marico's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Marico's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Marico is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Marico's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Marico's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 10.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Marico Company Filings, last reported 3 months ago.

NSEI:MARICO Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 30,617.20 3,225.60 13,029.00
2018-09-30 30,617.20 3,225.60 13,029.00
2018-06-30 25,553.80 3,238.90 6,854.50
2018-03-31 25,553.80 3,238.90 6,854.50
2017-12-31 27,606.20 2,717.80 12,949.60
2017-09-30 27,606.20 2,717.80 12,949.60
2017-06-30 23,390.20 2,388.00 7,604.50
2017-03-31 23,390.20 2,474.70 7,691.30
2016-12-31 24,923.40 2,163.90 10,896.50
2016-09-30 24,923.40 2,163.90 10,896.50
2016-06-30 21,111.60 3,446.30 6,566.80
2016-03-31 20,316.80 3,442.60 7,864.90
2015-12-31 22,399.27 2,389.08 8,805.13
2015-09-30 22,399.27 2,389.08 8,805.13
2015-06-30 18,384.30 4,322.90 4,429.90
2015-03-31 18,384.30 4,322.90 4,419.90
2014-12-31 16,724.93 4,154.28 4,720.42
2014-09-30 16,724.93 4,154.28 4,720.42
2014-06-30 13,964.20 6,829.30 6,670.70
2014-03-31 13,964.20 6,829.30 6,670.70
2013-12-31 14,065.99 7,121.28 6,719.99
2013-09-30 14,065.99 7,121.28 6,719.99
2013-06-30 20,166.40 8,742.90 3,803.50
2013-03-31 20,166.40 8,742.90 3,803.50
2012-12-31 18,300.79 7,479.79 3,196.23
2012-09-30 18,300.79 7,479.79 3,196.23
2012-06-30 11,679.10 7,953.50 4,250.70
  • Marico's level of debt (10.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (50.6% vs 10.5% today).
  • Debt is well covered by operating cash flow (171.9%, greater than 20% of total debt).
  • Marico earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Marico's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Marico has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MARICO Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.3%
Current annual income from Marico dividends. Estimated to be 1.62% next year.
If you bought ₹2,000 of Marico shares you are expected to receive ₹26 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Marico's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.5%).
  • Marico's dividend is below the markets top 25% of dividend payers in India (1.92%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:MARICO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 28 Analyst Estimates (S&P Global) See Below
India Personal Products Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 1%
India Market Average Dividend Yield Market Cap Weighted Average of 1400 Stocks 1.3%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:MARICO Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 6.25 24.00
2020-03-31 5.56 25.00
2019-03-31 4.77 25.00
NSEI:MARICO Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-02-05 4.750 1.370
2018-11-01 4.500 1.235
2018-07-09 4.250 1.245
2018-05-02 4.250 1.301
2018-02-09 4.250 1.350
2017-10-30 3.750 1.206
2017-07-10 4.000 1.246
2017-06-08 4.000 1.265
2017-05-02 4.000 1.277
2017-02-02 4.000 1.399
2016-11-04 3.000 1.179
2016-03-10 2.375 0.888
2016-02-01 2.375 1.022
2015-11-04 1.750 0.809
2015-07-13 1.500 0.730
2015-02-03 1.500 0.760
2014-11-07 1.000 0.603
2014-07-07 1.000 0.728
2014-04-30 1.000 0.841
2014-01-31 1.000 0.953
2013-10-29 0.750 0.705
2013-04-30 0.500 0.465
2012-05-03 0.350 0.347
2011-11-04 0.330 0.423
2011-08-16 0.330 0.439
2010-10-26 0.330 0.487
2010-04-28 0.330 0.548
2009-04-22 0.328 0.730
2009-04-21 0.328 1.002

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Marico's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess Marico's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Marico afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Marico has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MARICO Management

 What is the CEO of Marico's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Saugata Gupta
COMPENSATION ₹206,238,498
TENURE AS CEO 12.3 years
CEO Bio

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 at International Consumer Products Corporation. and has been its Member of Board of Management since April 29, 2013. He serves as Chairman of Board of Management at Thuan Phat Foodstuff Joint Stock Company. Mr. Gupta served as the Chief Executive Officer of Consumer Products at Marico Limited. He served as Chief of Marketing of Marico Ltd. He joined Marico Limited in January 2004 as head of Marketing and served as Chief Executive Officer of India business since 2007. He served as the Chief of Marketing and Group Sales at ICICI Prudential and was part of the start up team that was instrumental in establishing ICICI Pru as the largest private sector Insurance firm in the country. He has been the Chairman at Marico Bangladesh Limited since 2013. Mr. Gupta serves as Chairman at Beaute Cosmetique Societe Par Actions and has been its Director since April 29, 2014. He has been Director at South Africa Consumer Care (Proprietary) Limited. July 5, 2013. He serves as Director at Broadcast Audience Research Council. He served as a Director at Marico Middle East FZE. since May 7, 2013. He has been Director at Marico South Africa Consumer Care (Proprietary) Limited and Marico South Africa (Proprietary) Ltd. since May 7, 2013. He started his career with Cadbury's where he spent 9 years in various roles in Sales and Marketing. His last role was Marketing Manager - Chocolates. He has 20 years of experience primarily in FMCG sector. He has been Executive Director of Marico Limited since April 1, 2014. He has been a Director at Marico Bangladesh Limited since April 23, 2013. Mr. Gupta has an engineering degree from IIT Kharagpur and a Management degree from IIM Bangalore.

CEO Compensation
  • Saugata's compensation has increased by more than 20% in the past year.
  • Saugata's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure of the Marico management team in years:

2.5
Average Tenure
  • The tenure for the Marico management team is about average.
Management Team

Harsh Mariwala

TITLE
Founder & Chairman
COMPENSATION
₹60M
AGE
67

Saugata Gupta

TITLE
MD, CEO & Executive Director
COMPENSATION
₹206M
TENURE
12.3 yrs

Vivek Karve

TITLE
Chief Financial Officer
COMPENSATION
₹22M
TENURE
5 yrs

Hemangi Ghag

TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹2M
TENURE
1.5 yrs

Sanjay Mishra

TITLE
Chief Operating Officer and India Sales & Bangladesh Business Head
TENURE
3.5 yrs

Sudhakar Mhaskar

TITLE
Chief Technology Officer

Gaurav Mediratta

TITLE
Executive VP & Head of Legal

Koshy George

TITLE
Chief Marketing Officer
TENURE
0.3 yrs

Amit Prakash

TITLE
Chief Human Resource Officer
TENURE
0.9 yrs

B. Sridhar

TITLE
Chief Operating Officer of Rest of South Asia - Middle East Asia Business
Board of Directors Tenure

Average tenure and age of the Marico board of directors in years:

8.8
Average Tenure
56
Average Age
  • The tenure for the Marico board of directors is about average.
Board of Directors

Harsh Mariwala

TITLE
Founder & Chairman
COMPENSATION
₹60M
AGE
67
TENURE
5 yrs

Saugata Gupta

TITLE
MD, CEO & Executive Director
COMPENSATION
₹206M
TENURE
5 yrs

Nikhil Khattau

TITLE
Non-Executive & Independent Director
COMPENSATION
₹4M
AGE
55
TENURE
17.8 yrs

Rajeev Bakshi

TITLE
Non-Executive & Independent Director
COMPENSATION
₹3M
AGE
61
TENURE
15.8 yrs

Hema Ravichandar

TITLE
Non Executive & Independent Director
COMPENSATION
₹4M
AGE
57
TENURE
13.8 yrs

Rajen Mariwala

TITLE
Non-Executive Director
COMPENSATION
₹3M
AGE
55
TENURE
13.8 yrs

Basavanhalli Nagesh

TITLE
Non-Executive Independent Director
COMPENSATION
₹4M
AGE
59
TENURE
8.8 yrs

Rishabh Mariwala

TITLE
Non-Executive Director
COMPENSATION
₹3M
AGE
36
TENURE
1.9 yrs

Ananth Sankaranarayanan

TITLE
Additional Independent Director
COMPENSATION
₹2M
AGE
41
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
20. Dec 18 Sell Saugata Gupta Individual 18. Dec 18 18. Dec 18 -50,000 ₹378.87 ₹-18,943,749
19. Dec 18 Sell Saugata Gupta Individual 14. Dec 18 17. Dec 18 -100,000 ₹373.30 ₹-37,329,981
X
Management checks
We assess Marico's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Marico has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MARICO News

Simply Wall St News

Marico Limited's (NSE:MARICO) Earnings Grew 13%, Did It Beat Long-Term Trend?

Investors may find my commentary, albeit very high-level and brief, on Marico Limited (NSE:MARICO) useful as an attempt to give more color around how Marico is currently performing. … View our latest analysis for Marico? … Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 12%, indicating the rate at which MARICO is growing has accelerated

Simply Wall St -

Is Marico Limited's (NSE:MARICO) 29% Better Than Average?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every ₹1 worth of shareholders' equity, it generated ₹0.29 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should You Be Tempted To Sell Marico Limited (NSE:MARICO) Because Of Its P/E Ratio?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll show how you can use Marico Limited's (NSE:MARICO) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Is Marico Limited's (NSE:MARICO) CEO Salary Justified?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … According to our data, Marico Limited has a market capitalization of ₹402.5b, and pays its CEO total annual compensation worth ₹206m. … As you can see, Saugata Gupta is paid more than the median CEO pay at companies of a similar size, in the same market

Simply Wall St -

Interested In Marico Limited (NSE:MARICO)? Here's What Its Recent Performance Looks Like

After reading Marico Limited's (NSE:MARICO) most recent earnings announcement (30 June 2018), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … Did MARICO beat its long-term earnings growth trend and its industry. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 12%, indicating the rate at which MARICO is growing has slowed down

Simply Wall St -

Is Marico Limited's (NSE:MARICO) Growth Strong Enough To Justify Its August Share Price?

Marico Limited (NSE:MARICO) closed yesterday at ₹378.7, which left some investors asking whether the high earnings potential can still be justified at this price. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors. … Marico's extremely high growth potential in the near future is attracting investors

Simply Wall St -

Did Marico Limited (NSE:MARICO) Create Value For Shareholders?

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … With more debt, MARICO can invest even more and earn more money, thus pushing up its returns. … However, ROE only measures returns against equity, not debt.

Simply Wall St -

Marico Limited (NSE:MARICO): Will The Growth Last?

After Marico Limited's (NSE:MARICO) earnings announcement in March 2018,. … analyst consensus outlook appear cautiously optimistic, … with profits predicted to increase by 18.81% next year

Simply Wall St -

Who Are The Major Shareholders Of Marico Limited (NSE:MARICO)?

Today, I will be analyzing Marico Limited’s (NSE:MARICO) recent ownership structure, an important but not-so-popular subject among individual investors. … Ownership structure has been found to have an impact on shareholder returns in both short- and long-term. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders.

Simply Wall St -

What Do Analysts Think About the future of Marico Limited's (NSE:MARICO)?

earnings growth of 15.11% annualised … over the couple of years ahead, … it's necessary to take a moment

Simply Wall St -

MARICO Company Info

Description

Marico Limited, together with its subsidiaries, manufactures and markets consumer products in India and internationally. 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 brands, including Parachute, Parachute Advansed, Nihar, Nihar Naturals, Saffola, Hair & Care, Revive, Mediker, Livon, Set-wet, etc.; and under various international brands, such as Parachute, Parachute Advansed, Fiancée, Hair Code, Caivil, Hercules, Black Chic, Code 10, Ingwe, X-men, Thuan Phat, etc. 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.

Details
Name: Marico Limited
MARICO
Exchange: NSEI
Founded: 1988
₹470,584,616,290
1,290,864,398
Website: http://www.marico.com
Address: Marico Limited
Grande Palladium,
7th Floor,
Mumbai,
Maharashtra, 400098,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 531642 Equity Shares Mumbai Stock Exchange IN INR 19. Nov 1999
NSEI MARICO Equity Shares National Stock Exchange of India IN INR 19. Nov 1999
Number of employees
Current staff
Staff numbers
2,297
Marico employees.
Industry
Personal Products
Household
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/20 12:48
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/02/05
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.