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.
