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Check Before You Invest : Marico Ltd

BSE: 531642 NSE: MARICO ISIN: INE196A01026
  |   Sector:  FMCG   |   Industry:  Edible Oil

Snapshot

Q.1 Which industry/sub-sector does Marico Ltd belong to?
Marico Ltd belongs to the FMCG sector, operating specifically within the Edible Oil segment.
Q.2 Is Marico Ltd a good quality company?
Marico Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Marico Ltd undervalued or overvalued?
Marico Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Marico Ltd a good buy now?
Marico Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Marico Ltd?
Marico Ltd revenue growth is 12.2% for FY-2025 , which is above its 5 year CAGR of 8.2% , indicating faster growth.
Q.2 Gross Profit margin of Marico Ltd?
Marico Ltd Gross profit margin which is the profit after deduction of direct costs, is 18.3% for FY-2025 , which is in line with its 5 year median of 18.3% , indicating stable margins.
Q.3 Operating Profit Margin of Marico Ltd?
Marico Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.74% for FY-2025 , which is in line with its 5 year median of 19.74% indicating stable margins.
Q.4 Net Profit Margin of Marico Ltd?
Marico Ltd Net Profit Margin is 15.31% for FY-2025 , is above with its 5 year median of 14.9%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 18.3 18.3
Operating Profit Margin 19.74 19.74
Net Profit Margin 15.31 14.9
Q.5 Return on Asset of Marico Ltd?
Marico Ltd Return on Asset is 21.21%, which is below its 5 year historical median of 21.32%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Marico Ltd?
Marico Ltd Return on equity is 43.36% for FY-2025 , which is above its historical median of 38.62%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Marico Ltd?
Marico Ltd Return on capital employed is 50.62% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Marico Ltd?
Marico Ltd Cash conversion cycle is 8 days, above its historical median of 5 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.6 1.75
ROE 43.36 38.62
ROCE 50.62 45.16
Cash Conversion Cycle 8 days 5 days
Q.9 Debt to Equity ratio of Marico Ltd?
Marico Ltd Debt-to-Equity ratio is 0.10 , which is above with the industry average of 0.05 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Marico Ltd?
Marico Ltd Debt to cash flow from operations is 0.28 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Marico Ltd?
Promoters hold 58.93% of the Marico Ltd, with 2.03% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Marico Ltd vs industry peers?
Marico Ltd revenue CAGR is 8.17% , compared to the industry median CAGR of 4.09% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 10,831 4,826.5
Gross Profit 1,982.1 666.6
Operating Profit 2,138 653.5
Net Profit 1,658 403
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.6 0.88
ROE 43.36 6.07
ROCE 50.62 6.73
Cash Conversion Cycle (days) 8.32 3

Valuation & price assessment

Q.1 Stock return of Marico Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 11.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 11.7% 12.3% 16.5% 6%
Q.3 Valuation ratios of Marico Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 56.41 43.92 37.53
Price to Book 21.43 14.18 2.30
Price to Sales 7.43 6.79 0.64
EV to EBITDA 39.35 30.25 16.35

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