Marico  Ltd

Marico  Ltd
Personal Products
FV – Rs 1; 52wks H/L –466.3/301.3 ; TTQ – 51 K; CMP – Rs 402.55(As On November 06, 2015; 15:30) ;                     

       Market Cap – Rs 25967 Crs

Consolidated Financials and Valuations for FY15 (Amt in Rs Crs unless specified)


Equity Capital
Net worth		 Long Term Debt
Total
Sales		 PAT
BV
(Rs)
EPS (Rs)
P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
64.50 1825 14 5792 574 28 8.89 45 66.35 14 59.67 0.46

 

Consolidated Financials and Valuations for H1 FY16


Equity Capital
Net worth
Total
Sales		 PAT
BV
(Rs)
TTM EPS (Rs)
TTM P/E
Industry P/E
P/BV
Promoter’s
Stake		 Beta
64.50 2220 1485 150 34  

10.22

  

39

  

66.35

  

12

  

59.67

 0.46

      *The profit on sale of divestment in the company’s subsidiary of Rs.9.62 Crs has been included in other income.

 Key Updates:

  • The company’s domestic business grew by 26% and international business grew by 10% in FY 14-15.
  • The company’s rural sales are at a faster pace to 32% as compared to urban sales of 23% by increasing its rural reach by 25% to 50000 villages in last two years.
  • The company launched its new project called ONE (Outlet Network Expansion) for increasing direct coverage in top six metros.
  • The company has low long term debt and Return on Equity of 31%.
  • The company has maintained a healthy dividend payout ratio.

Overwiew:

Marico Ltd is engaged in the business of branded consumer products and services. The Company operates in two segments: Consumer Products and Others. Its Consumer Products include Coconut oils, other edible oils, hair oils and other hair care products, male grooming products, fabric care products, healthy foods, soaps, health care products and female beauty care products. Others segment is engaged in skin care. In India, Marico Limited manufactures and markets products under the brands such as Parachute Advansed, Saffola, Hair & Care, Nihar, Mediker, Revive, Manjal, Setwet, Zatak and Livon. Marico’s international portfolio includes brands such as Parachute, Hair Code, Fiancee, Caivil, Hercules, BlackChic, Code 10, Ingwe, X-Men, L’Ovite and Thuan Phat. It is present in Skin Care solutions business under the brand name Kaya in India and international markets and the brand Derma Rx in Singapore and Malaysia. The Company currently present in 25 countries.     

 

Major International Business Contribution
Name Of the Countries % Contribution
Bangladesh 45
South East Asia 26
Middle East and North Africa 18
South Africa 8

 

Management:

  • Saugata Gupta – MD & CEO
  • Vivek Karve – CFO

Major Non-Promoter Holdings:

Sr.No Non – Promoters No. of Shares held % of shares held
1 Arisaig Partners Pte Ltd 33278269 5.16
2 Life Insurance Corporation Of India 12416425 1.92
3 Hasham Investment & Trading Co. Pvt.Ltd 8771819 1.36
4 Baring India Private Equity Fund 6965007 1.08
  Total 61431520 9.52

 

 

Consolidated Financial Trends (In Rs. Crs) :

Particulars FY15 FY14 FY13 FY12 FY11
Equity Paid Up 64.5 64.5 64.5 61.5 61.4
Networth 1825 1360 1982 1143 915
Total Debt 179 314 790 763 721
Net Sales 5792 4744 4633 4041 3156
Other Income 59 58 38 33 21
PAT 574 485 396 317 286
Book Value (Rs) 28 21 31 19 15
EPS (Rs) 8.9 7.5 6.1 5.2 4.7

 

The company raised capital amounting to Rs.500 Crs on preferential basis and investors were allotted 29411764 equity shares of FV Rs.1 each at a share premium of Rs.169 each on 16th May,2012 which resulted in increase in Equity share capital.

Risks:

  • Changing consumer Preferences.
  • Product Innovation and New Product Launches.
  • Foreign Currency exposure as export oriented company.
  • Competition and Political Risks.
  • Accquisitions and Retention.