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Marico Limited is a leading consumer products and service company in India focusing more on the personal and healthcare sectors. The company operates in two main segments: The Consumer Products segment offer coconut oils, other edible oils, hair oils, male grooming products, fabric care products, healthy foods, soaps and female beauty care products Consumer Products South Asia and Others segment provides skin care products.
Some of Marico’s flag ship brands in India are Parachute, Nihar, Saffola, Hair & Care, Revive, Shanti, Oil of Malabar, Mediker and Manjal. Globally, Marico has also earned a reputation through products like Fiancee, HairCode, Camelia and X-men among other brands.
Also, the group has enormously progressed in the skin care division through Kaya in India and the overseas; Derma Rx in Singapore and Malaysia. The Company continued to establish its presence in the personal care market when it acquired Halite Personal Care India Private Limited in the same year 2012.
Now based on the latest market statistics as of writing, Marico Limited is trading at INR 638.35/share in the NSE, down from the last close by INR 12.40 or about 1.91%. The company has an intraday market capitalization of INR 827.1 billion that shows it is a large player in the market. The beta of Marico over 5 years is only 0.21 which in fact signals that it is less volatile than the market.
As for now, this company has a price-to-earnings (P/E) ratio of 52.25 and earnings per share (EPS) for the trailing twelve months (TTM) of INR 12.69. The next financial period of Marico will be released on earnings in the period between January 27th 2025 and January 31st 2025.
The forward dividend is as follows; a forward dividend of INR 9.50 with an offer yield of 1.46%, the ex-dividend date, which is an important aspect of the company, is set for March 6th 2024. The 1-year target estimate for the stock price is INR 619.71.
Release Date: October 29, 2024
Marico Ltd released its Q2 2025 results which showed good international growth and increased domestic volumes on diverse products. Here are the key highlights from the earnings call:
Strong International Growth: Overall, Marico posted impressive double-digit growth momentum for its international operations which was a major driver to performance.
Domestic Volume Growth: Sequential growth was reported, all major product segments reported positive growth trends.
Market Share Performance: Organisation was capable of maintaining a strong market, as it confirmed that about 80% of products either achieved or retained MAT.
Parachute Volume Share: Volume share on a MAT basis improved by 120 basis points on Marico’s Parachute brand, which was due to the competitive position of the company.
Parachute Revenue Growth: Revenue from the Parachute segment shifted to double-digit growth led by some pricing merger strategies.
Saffola Edible Oil Pricing: The inflation raised by at least 15% which could be attributed to increment in import duties, position well in line with Marico’s pricing strategies.
Value-Added Hair Oil Market Share: It was also evident that the organization managed to obtain 110 basis points worth within the hair oil segment of the market.
Food Segment Performance: The food segment revenue achieved an annual run rate of over INR 1000 crore during Q2 signifying strong customer appetitive.
Premium Personal Care Growth: While the rest of the company saw some level of growth, the premium personal care segment has hit ARR of INR 525 crore and expected to hit exit ARR of INR 600 crore by end of the year.
Consolidated Revenue Growth Outlook: Marico expects that consolidated revenues will get back on to double-digit growth in the second half of the current fiscal buoyed by its confidence on demand and strategic action plans.
Cautionary Note: GuruFocus has identified five warning signs related to BOM: 531642, which investors should consider when evaluating the company's performance.
Overall, Marico Ltd's Q2 2025 results demonstrate a positive trajectory in both domestic and international markets, reinforcing its position as a leader in the branded consumer products space.
As of the latest assessment on October 29th 2024, Marico Ltd valuation metrics indicate a strong market position within the consumer products sector. Key valuation measures are as follows:
Market Capitalization: INR 841.66 billion
Enterprise Value: INR 832.10 billion
Trailing Price-to-Earnings (P/E) Ratio: 53.11
Forward P/E Ratio: Not available
PEG Ratio (5-year expected): Not available
Price/Sales (TTM): 8.49
Price/Book (MRQ): 18.09
Enterprise Value/Revenue: 8.38
Enterprise Value/EBITDA: 36.90
These valuation metrics suggest that while Marico has a high market cap and enterprise value, its P/E and other ratios indicate significant investor confidence and growth potential, albeit at a premium valuation.
Marico Ltd financial performance highlights reveal strong profitability and efficient operations:
Profit Margin: 15.87%, indicating a healthy portion of revenue is retained as profit.
Return on Assets (TTM): 14.90%, reflecting effective asset utilization to generate profits.
Return on Equity (TTM): 33.74%, showcasing strong returns for shareholders.
Revenue (TTM): INR 100.07 billion, illustrating substantial sales volume.
Net Income Available to Common (TTM): INR 15.88 billion, highlighting profitability.
Diluted Earnings Per Share (EPS) (TTM): INR 12.24, providing insight into profitability on a per-share basis.
Total Cash (MRQ): INR 14.53 billion, providing liquidity for operations and investments.
Total Debt/Equity (MRQ): 10.05%, indicating low leverage and financial stability.
Levered Free Cash Flow (TTM): INR 4.44 billion, demonstrating healthy cash flow after accounting for debt obligations.
Overall, Marico Ltd's financial metrics and profitability ratios depict a well-managed company with strong earnings potential and a solid balance sheet, positioning it favorably for future growth.
The performance overview for Marico Limited's stock, listed as MARICO.NS, in comparison with the S&P BSE SENSEX benchmark is shown below.
Year-to-Date (YTD) Return: Marico has achieved a 18.07% return, significantly outperforming the S&P BSE SENSEX, which yielded 10.12%. This indicates that Marico has been strong so far this year compared to the overall market.
1-Year Return: Marico posted a 22.37% return, slightly under the benchmark’s 24.09%. Despite the benchmark’s higher performance over the past year, Marico's return remains competitive.
3-Year Return: Marico's 3-year return is 17.70%, while the benchmark achieved 34.14%. This gap suggests that Marico’s performance over a medium-term horizon has trailed the broader market.
5-Year Return: Marico’s 5-year return stands at an impressive 87.77%, though still slightly below the S&P BSE SENSEX's return of 98.63%. Over a longer period, Marico has shown strong growth, nearly matching the benchmark.
In summary, Marico’s stock has shown resilience and substantial growth, especially in the short-term (YTD), where it has outpaced the benchmark. However, for longer periods (3- and 5-year), it has slightly underperformed relative to the SENSEX. This suggests that Marico may be a solid choice for investors looking for steady growth but who are willing to accept potential periods of underperformance against the overall market.
In Q3 2023, Marico reported an EPS of -$0.11, which missed analysts' estimates.
The company bounced back in Q4 2023, with an EPS of +$0.05, surpassing expectations.
However, in Q1 2024, the EPS again missed estimates, coming in at -$0.07.
The current estimate for Q2 2024 stands at +$3.53, suggesting analysts expect a substantial turnaround in profitability.
This trend indicates some volatility in Marico’s quarterly earnings, with a mix of positive and negative surprises. A potential improvement in EPS in the next quarter, if met, could signal a return to profitability and better financial health.
The revenue has remained relatively steady, with Q3 2024 showing revenue of 26.64 billion. In contrast, earnings are significantly lower, with Q3 2024 earnings at approximately 4.23 billion.
Marico Ltd has exhibited a bearish trend since reaching a peak of INR 719.85 on October 3rd, 2024. The stock's recent price movements indicate a downward trajectory as it approaches the significant support level of INR 590, which has provided strong support since August of the previous year.
Bearish Trend: Since the recent high, the price has consistently declined, indicating a bearish sentiment among investors.
Support Level: The INR 590 mark is critical, having acted as a strong support level over the past months. If the price touches this level, it will be essential to observe whether it holds or breaks.
Potential Rebound: Should the stock price rebound from the INR 590 support level, the next target would be to revisit the previous high of INR 719.85. A successful bounce back could signal a reversal in trend and provide a bullish outlook for Marico Ltd.
Short-term Resistance: If the price rebounds, the immediate resistance level to watch will be at INR 719.85. Successfully breaking through this level could pave the way for further upside movement.
Marico Ltd continues to demonstrate strong resilience and growth potential within the branded consumer products sector. Despite facing recent bearish trends and a decline in stock prices from its October peak, the company’s strong fundamentals and strategic initiatives position it favorably for future recovery. Key highlights from the recent earnings call reflect impressive domestic and international growth, effective market share management and a solid financial performance, underscoring its competitive edge in the market.
With significant support levels in place and a positive outlook for revenue growth, Marico remains a strong player poised for potential rebounds in stock price. As investors navigate the complexities of the market, understanding Marico’s performance metrics and future projections will be essential for informed decision-making.
