MARICO LTDLong
Strong Buy Marico cmp 522 Target 550++ in 5-10 trade sessions
Updated
Marico Limited is one of India's leading consumer goods companies operating in global beauty and wellness categories. It is present in over 25 countries across emerging markets of Asia and Africa. It nurtures leading brands across categories of hair care, skin care, edible oils, healthy foods, male grooming and fabric care.
Below are all the product categories that the company caters to in the domestic market and the brands of the company :
1. Coconut Oil - Parachute, Nihar Naturals.
2. Super-premium Refined edible oils - Saffola.
3. Value added hair oils - Parachute advansed, Nihar naturals, Hair & Care.
4. Healthy foods - Saffola oats, Coco Soul. Coconut oil, Saffola FITTIFY Gourmet Range.
5. Premium Hair Nourishment - Livon Serums, Hair & Care.
6. Male Grooming & Styling - Set Wet, Beardo, Parachute.
7. Skin Care - Kaya Youth, Parachute advansed.
8. Hygiene - Mediker, Veggie Clean
Market Share
Market share of company’s leading brands as of Q1FY22 were as follows:
Coconut Oils, MS: 62%, Rank: 1 st
Parachute Rigids, MS: 52%, Rank: 1 st
Saffola – Super Premium ROCP, MS:, Rank: 82% 1 st
Saffola Oats, MS: 39%, Rank: 2 nd
Saffola Masala Oats - Flavored Oats, MS: 94%, Rank: 1 st
Value Added Hair Oils, MS: 37%, Rank: 1st
Post wash Leave-on Serums, MS: 63%, Rank: 1st
Hair Gels/Waxes/Creams, MS: 58%, Rank: 1st
Revenue Breakup FY22
In FY22, ~77% of the total consolidated revenues were generated from domestic business. In the domestic market, coconut oils accounted for 40% of the total revenues followed by refined oils 25%, value added hair oils 21%, Personal care products (male grooming, skin care) ~5%.
Distribution Network
The company has a pan-India distribution network with a reach of 5.6 million outlets out of a total of ~12 million outlets in India. In FY22, Modern Trade and e-commerce contributed to 14% and 9% of the domestic business respectively.
International Business
In FY22, ~23% of the total consolidated revenues were generated from international business. Top export countries are Bangladesh (51% % of export revenues), followed by South East Asia (23%) , Middle East (13 %), and South Africa (7%). The international business portfolio includes brands such as Parachute, HairCode, Mediker SafeLife, Fiancee, caivil, Hercules, Black Chic, Code 10, Ingwe, X-Men, Sedure, Thuan Phat and Isoplus.
Capex
In FY22, co. incurred 132 Crore Capital expenditure for capacity expansion and maintenance of existing manufacturing facilities.
Marico is undertaking strategic investments to accelerate its digital transformation journey through building scalable digital-first brands, either organically or inorganically.
Market Cap ₹ 67,791 Cr
Stock P/E 46.3
ROCE 41.9 %
Dividend Yield 0.86 %
Currently PE is 46 as compared to Median PE of 50 and with such high ROCE and more than 3/4% of dividend yield, this stock is looking for a strong momentum looking at the way Marico is strategically increasing its business. Technically, it seems that price structure has changed on hourly chart and it seems to be bottom out as it has done time and price wise correction. At current market price(CMP) of 522, this is best rate to enter for quick target of 550 and 580 in a 5-10 trading session.
Below are all the product categories that the company caters to in the domestic market and the brands of the company :
1. Coconut Oil - Parachute, Nihar Naturals.
2. Super-premium Refined edible oils - Saffola.
3. Value added hair oils - Parachute advansed, Nihar naturals, Hair & Care.
4. Healthy foods - Saffola oats, Coco Soul. Coconut oil, Saffola FITTIFY Gourmet Range.
5. Premium Hair Nourishment - Livon Serums, Hair & Care.
6. Male Grooming & Styling - Set Wet, Beardo, Parachute.
7. Skin Care - Kaya Youth, Parachute advansed.
8. Hygiene - Mediker, Veggie Clean
Market Share
Market share of company’s leading brands as of Q1FY22 were as follows:
Coconut Oils, MS: 62%, Rank: 1 st
Parachute Rigids, MS: 52%, Rank: 1 st
Saffola – Super Premium ROCP, MS:, Rank: 82% 1 st
Saffola Oats, MS: 39%, Rank: 2 nd
Saffola Masala Oats - Flavored Oats, MS: 94%, Rank: 1 st
Value Added Hair Oils, MS: 37%, Rank: 1st
Post wash Leave-on Serums, MS: 63%, Rank: 1st
Hair Gels/Waxes/Creams, MS: 58%, Rank: 1st
Revenue Breakup FY22
In FY22, ~77% of the total consolidated revenues were generated from domestic business. In the domestic market, coconut oils accounted for 40% of the total revenues followed by refined oils 25%, value added hair oils 21%, Personal care products (male grooming, skin care) ~5%.
Distribution Network
The company has a pan-India distribution network with a reach of 5.6 million outlets out of a total of ~12 million outlets in India. In FY22, Modern Trade and e-commerce contributed to 14% and 9% of the domestic business respectively.
International Business
In FY22, ~23% of the total consolidated revenues were generated from international business. Top export countries are Bangladesh (51% % of export revenues), followed by South East Asia (23%) , Middle East (13 %), and South Africa (7%). The international business portfolio includes brands such as Parachute, HairCode, Mediker SafeLife, Fiancee, caivil, Hercules, Black Chic, Code 10, Ingwe, X-Men, Sedure, Thuan Phat and Isoplus.
Capex
In FY22, co. incurred 132 Crore Capital expenditure for capacity expansion and maintenance of existing manufacturing facilities.
Marico is undertaking strategic investments to accelerate its digital transformation journey through building scalable digital-first brands, either organically or inorganically.
Market Cap ₹ 67,791 Cr
Stock P/E 46.3
ROCE 41.9 %
Dividend Yield 0.86 %
Currently PE is 46 as compared to Median PE of 50 and with such high ROCE and more than 3/4% of dividend yield, this stock is looking for a strong momentum looking at the way Marico is strategically increasing its business. Technically, it seems that price structure has changed on hourly chart and it seems to be bottom out as it has done time and price wise correction. At current market price(CMP) of 522, this is best rate to enter for quick target of 550 and 580 in a 5-10 trading session.
Trade closed: target reached
Marico sharply went up after the result and its now trading 590 plus. Cheers, book profit or keep trail stop loss.
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