1
Please refer to important disclosures at the end of this report
1
1
Marico Limited is a consumer products company operating in the beauty and
wellness space. Following GST rollout, the company expects to gain market share
from unorganized players over the longer term. Marico is targeting 15% sales
CAGR which is expected to be driven by volumes (8-10% in India), double-digit
constant currency growth in the overseas business, commodity-led inflation (3-
4%), and premiumization and new products. Key pillars of 15% sales CAGR are
(1) rural opportunities, (2) premiumization, (3) underpenetrated male grooming
segment, (4) products enabling hair fall control, and other such problem-solving
products involving hair and (5) horizon 2 projects like 'Beardo,’ which cater to the
new-age customer. Marico also remains one of the key beneficiaries of revival in
urban demand, which will be helped by events like good rainfall, Seventh Pay
Commission, OROP, and recovery in rural areas will also lend fillip to growth.
Marico has reported top-line of 8% CAGR and a healthy bottom-line of 20%
CAGR over FY2012-17. Further, the company’s debt/equity ratio has improved
from 0.74 in FY2012 to 0.13 in FY2017 and also the cash flow has improved
from `397.13cr in FY2012 to `611.57cr in FY2017.Marico has been reporting
average return on equity (ROE) of 35.52% for the last 3 years and also maintains
healthy dividend payout of 55.73%.Hence Buy.
BUY
CMP `325
52 Week High / Low
337.5/234.55
Avg. Daily Volume
97,873
FMCG
Market Cap (` cr)
41,972
1
BSE Sensex
31,688
Nifty
9,935
Face Value (`)
Reuters Code
MRCO.NS
MRCO:IN
1.0
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
Marico Ltd
Others | FMCG
Sept 08, 2017
2
Marico Ltd |FMCG
June 5, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Marico
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)