Marico (BOM:531642)

The Economic Times  Oct 24  Comment 
Buy Marico Ltd. at a price target of Rs 310 and a stop loss at Rs 275 from entry point
The Economic Times  Oct 18  Comment 
Marico volume surging in market, Buy for a target of Rs 295 and a stop loss of Rs 270
The Economic Times  Sep 12  Comment 
"That's because it is much higher than the current effective tax rates. That is what covers the essential commodities — things that impact the common man."
The Hindu Business Line  Sep 1  Comment 
As pests play havoc with production, Marico steps in to help growers
The Hindu Business Line  Aug 23  Comment 
FMCG major sees big potential in e-comm; will focus on driving organic growth
The Economic Times  Aug 16  Comment 
Buy Marico Ltd. at a price target of Rs 302.0 and a stop loss at Rs 286.0 from entry point
The Economic Times  Aug 16  Comment 
The Economic Times  Aug 10  Comment 
"Patanjali has opened up the gates; there is no reason why a Hindustan Lever or a Procter & Gamble or a Dabur or a Marico will not take advantage of it."
The Economic Times  Aug 9  Comment 
Marico's PE is likely to constrict stock performance over the near-term.
The Hindu Business Line  Aug 8  Comment 
MD and CEO Saugata Gupta says the volume growth may still remain below double digits in Q2
The Economic Times  Aug 5  Comment 
The company had reported a net profit of Rs 228.53 crore in April-June quarter a year ago, Marico said in a BSE filing.


Marico is one of the leading Indian groups in consumer products and services in the beauty and wellness space. It has products and services in hair care, skin care and healthy foods. Marico's brands and their extensions occupy leadership positions with significant market shares in all categories. The company is present in the skin care services segment through Kaya skin care clinics (85 clinics) in India and the UAE. Marico's branded products are also present in Bangladesh, other South Asian Association for Regional Co-operation (SAARC) countries and the Middle East. Marico has been growing both organically and inorganically. It acquired ‘Nihar’, ‘Oil of Malabar’ and 'Manjal' herbal soap brand in India. It acquired a clutch of brands namely 'Camelia', 'Aromatic' and 'Magnolia' in Bangladesh and ‘Fiancee’ and ‘Haircode’ in Egypt. The company sold the Sundari business and Sil Brand.

Marico reported a strong 25% YoY growth in the consolidated topline for FY09 led by the 22% YoY growth in consumer product business, 43% YoY growth in international business and 57% YoY growth in Kaya. The operating margins were at 13% and the company reported a 12% YoY growth in net profits.

Marico’s business model is based on focused growth across all its brands and territories driven by continuously improving the value proposition to consumers, market expansion and widening its retail reach. It has identified new engines of growth and is also focusing on high margin products. It continues to improve its market share across product categories and is also doing well in the international business. The management’s uncommon thinking of transforming Marico from an oil company to a health and wellness firm is paying off well.

Consolidated picture
(Rs m) 4QFY08 4QFY09 Change FY08 FY09 Change
Net sales 4,659 5,612 20.50% 19,050 23,884 25.40%
Expenditure 4,203 4,879 16.10% 16,588 20,864 25.80%
Operating profit (EBDITA) 456 732 60.70% 2,463 3,020 22.60%
EBDITA margin (%) 9.80% 13.10% 12.90% 12.60%
Other income 52 80 53.70% 96 142 48.80%
Interest 87 113 29.90% 305 357 17.10%
Depreciation 79 104 31.90% 307 358 16.50%
Profit before tax 341 594 74.20% 1,946 2,447 25.80%
Extraordinary items 106 (150) 106 (150)
Tax 39 1 (97.70%) 360 409 13.80%
Profit after tax/(loss) 408 444 8.60% 1,692 1,887 11.50%
Minority interest 1 (1)
Net profit after tax/(loss) 408 444 8.60% 1,691 1,888 11.70%
Net profit margin (%) 8.80% 7.90% 8.90% 7.90%
No. of shares (m) 609 609 609 609
Diluted earnings per share (Rs)* 3.1
Price to earnings ratio (x)* 21.9
* 12 month trailing earnings

Segment Revenue
Rs m 4QFY08 4QFY09 Change FY08 FY09 Change
FMCG 4,337 5,163 19.10% 17,938 22,201 23.80%
% of total revenue 93.10% 92.00% 94.20% 93.00%
Others 322 448 39.20% 1,113 1,683 51.20%
% of total revenue 6.90% 8.00% 5.80% 7.00%
Total 4,659 5,612 20.50% 19,050 23,884 25.40%
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