8 August 2016
Q1FY17 Results Update | Sector: Consumer
Marico
BSE SENSEX
28,183
S&P CNX
8,711
CMP: INR300
TP: INR305(2%)
Neutral
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Lower input costs drive profitability
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm/ Vol m
Free float (%)
MRCO IN
1,290.2
324.3 / 4.9
307 / 190
10/13/37
388
40.3
Financials & Valuations (INR b)
Y/E Mar
2016 2017E 2018E
Net Sales
60.1
63.0
75.3
EBITDA
10.4
11.8
14.3
PAT
7.2
8.3
10.2
EPS (INR)
5.6
6.4
7.9
Gr. (%)
26.1
14.6
22.8
BV/Sh (INR)
16.3
18.5
21.6
RoE (%)
36.9
37.0
39.3
RoCE (%)
31.4
32.2
34.3
P/E (x)
53.5
46.7
38.0
P/BV (x)
18.5
16.2
13.9
Estimate change
TP change
Rating change
Sales below estimates; EBITDA and PAT exceed expectations:
Marico (MRCO)
posted flat consolidated net sales growth of 0.1% YoY (est. of +10.5% YoY) to
INR17.5b (Ind-AS), EBITDA growth of 16.8% YoY (est. of +13.5% YoY) to INR3.7b
and adjusted PAT growth of 17.2% YoY (est. of +13.1% YoY) to INR2.68b.
Volume growth was 8% for both the domestic (est. of 11%) and international
businesses. Domestic business reported flat revenue growth, with market
shares gained/maintained across all key segments – Parachute (7% volume and
-12% value growth), Saffola (11% volume and value growth) and VAHO (9%
volume and value growth).
Gross margins expanded 720bp YoY
to 51.9%, led by benign RM costs—copra
down 41% YoY (-7% QoQ), Liquid Paraffin down 19% YoY and HDPE down 9%
YoY. Despite higher ad spends (+220bp YoY) and other expenses (+160bp),
EBITDA margin expansion was impressive at 300bp YoY (est. of 50bp) to 21.1%.
PAT grew 17.2% YoY (est. of 13.1%) to INR2.68b.
Concall highlights:
(a) Volume growth guidance of 5-7% for the next three
quarters in Parachute. (b) Saffola volume growth guided at 10% in 2HFY17, and
sees a strong pipeline of products as well in that period (c) Guided for 8-10%
growth in VAHO volumes for the remainder of the year. (d) Monsoons will lead
to lower inflation and thus more spending power for consumers. DBT and 7th
Pay Commission implementation will also help rural demand.
Retain Neutral
:
Volume growth, although lower-than-anticipated, was healthy
across all domestic segments, which is a positive surprise when compared to
peers. Strong gross margin growth ensured EBITDA and PAT beat. While margin
gains may not be as high in the subsequent quarters with hardening input
costs, changes to our model have resulted in 2%/7% upgrade to our FY17/FY18
EPS forecasts. Consistently strong volume performance in an adverse
environment, healthy EPS growth, ROEs of close to 40% and high standards of
disclosures/corporate governance justify the valuation premium. Targeting
36xJune 2018 EPS, we get a TP of INR305. Maintaining
Neutral.
Krishnan Sambamoorthy
(Krishnan.Sambamoorthy@MotilalOswal.com); +91 22 3982 5428
Vishal Punmiya
(Vishal.Punmiya@MotilalOswal.com); +91 22 3980 4261
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Marico
Key quarterly charts
Exhibit 1: Volume growth healthy at 8.4% in 4QFY16
Marico India
Segment growth (%)
Parachute Rigid
Saffola
Value added hair oils
Domestic Business
1QFY16
Volume
Value
8.0
16.0
4.0
7.0
14.0
19.0
6.0
12.0
2QFY16
Volume
Value
11.0
9.0
4.0
4.0
8.0
9.0
5.5
4.0
3QFY16
Volume
Value
4.0
(1.0)
17.0
15.0
21.0
20.0
10.5
7.0
4QFY16
Volume
Value
6.0
(5.0)
13.0
14.0
11.0
12.0
8.4
4.0
1QFY17
Volume
Value
7.0
(12.0)
11.0
11.0
9.0
9.0
8.0
(1.0)
Source: Company, MOSL
Exhibit 2: Domestic volumes posted 8% growth in 1QFY17
Domestic Volume growth (%)
16
10
9
10
4
6
3
7
9
5
6
3
6
Exhibit 3:
Parachute
rigid volumes grew 7%
18
Parachute Volume growth (%)
8
8
8
8
9
6
5
4
1
2
10
6
7
11
8
5
8
4
6
7
Source: MOSL, Company
Source: MOSL, Company
Exhibit 4:
Saffola
volume growth stood at 11%
Saffola Volume growth (%)
12
6
4
5
10
7
11 10
9
9
3
4
4
17
13
11
Exhibit 5: VAHO volumes grew by 9%
30
25
20
24
16 15
8
5
13
14
5
8
VAHO Volume growth (%)
21
11
10
11
9
(1)
Source: MOSL, Company
Source: MOSL, Company
Exhibit 6: Segmental Details
Sales (INR m)
Domestic
International
Total
EBIT
Domestic
International
Total
EBIT margins
Domestic EBIT margins
International EBIT margins
Total
1QFY15
12,800
3,430
16,230
2,320
550
2,870
18.1%
16.0%
17.7%
2QFY15
10,790
3,520
14,310
1,550
520
2,070
14.3%
14.8%
14.5%
3QFY15
11,400
3,120
14,520
2,010
470
2,480
17.7%
15.1%
17.1%
4QFY15
9,490
2,770
12,260
1,600
370
1,970
16.9%
13.4%
16.1%
1QFY16
14,037
3,463
17,500
2,955
583
3,539
21.1%
16.8%
20.2%
2QFY16
11,270
3,590
14,860
1,880
570
2,450
16.7%
15.9%
16.5%
3QFY16
12,150
3,410
15,560
2,710
610
3,320
22.3%
17.9%
21.3%
4QFY16
9,775
3,146
12,920
2,134
326
2,461
1QFY17
13,874
3,669
17,543
3,411
701
4,112
21.8%
24.6%
10.4%
19.1%
19.0%
23.4%
Source: Company, MOSL
8 August 2016
2

Marico
Exhibit 7: Consumer offers for the quarter
Source: Company, MOSL
Consol EBITDA and PAT ahead of expectations
Marico’s posted flat consol net sales growth (0.1% vs est. 10.5%) to INR17.5b
(Ind AS).
Gross margin expanded 720bp YoY (est 100 bp) to 51.9% due to benign raw
material costs. Copra costs were down 41% YoY and 7% sequentially. Rice Bran
oil was up 15% and Liquid Paraffin (LP) was down 19% during the quarter as
compared to Q1FY16. The increase in crude oil price has resulted in LLP prices
being up by 11% compared to Q4 FY16. HDPE (a key ingredient in packaging
material) price was down 9% compared to Q1FY16. Management stated in the
press release that they expect Copra prices to increase in the next two quarters.
The company used some of the huge gross margin increase to increase Ad
spends (up 220bp YoY). There was also an increase in other expenditure (up 160
bp YoY) and staff costs (up 40bp YoY). Despite these increases, EBITDA margin
expanded 300bp YoY (est. 50 bp) to 21.1% and EBITDA grew 16.8% YoY (est.
13.5% YoY growth) to INR3.7b (Ind AS).
Adj. PAT growth was up 17.2% YoY (est. 13.1% growth) to INR2.68b (Ind AS).
Domestic: Healthy volume growth in Saffola and VAHO
Domestic volume growth was 8% (est 11%) while. domestic revenues were flat.
Segmental growth- Parachute7% (est.9%), Saffola 9% (est. 12%), Value Added
Hair Oils 11% (est. 13%). Value growth for these key segments was -12%, 9%
and 11% respectively. There was an 18% price decrease in Parachute while
realization in Saffola and VAHO was flat YoY. The Youth brands portfolio grew by
15% in value terms
.
Marico’s rural sales declined by 4% due to higher exposure to the coconut oil
portfolio while the urban sales remained flat in Q1 FY17. Sales in Modern Trade
(9% of the India turnover) continued the good run with growth of 14% in
Q1FY17. CSD and Institutional sales (8% of the India turnover) grew at 3% in
Q1FY17.
Standalone gross margins expanded 660bps YoY to 49.4% while EBITDA margins
grew by 400bps YoY to 21.3%. A&P to sales were up 130 bps YoY to 10.6%
3
8 August 2016

Marico
Parachute (rigid packs): Parachute rigid posted volume growth of 7% while
value growth declined by 12%% (we note, MRCO had initiated weighted price
cut of 6% at the beginning of 3QFY16 and has taken another 6% price cut in
1QFY17. Portfolio market share as on 12 months ended Jun’16 stands at 58%,
maintained YoY.
Value-added hair oils posted 9% and 9% volume and value growth. Marico
continues to grow faster than the market and has gained 147bp in volume and
85 bp in value terms to reach 32% and 25% market share respectively for 12
months ending June 2016.
Saffola posted volume and value growth of 11%. Saffola’s market share has
increased by 261bps to 63% on 12 months ended Jun’16. Saffola Oats exited at
27% value market share (71% value market share in flavored oats market on
MAT basis). Saffola oats franchise crossed INR 1.0b in FY16 (INR2b by FY18).
Youth portfolio:
Youth portfolio increased 15% in value terms in 1QFY17. Set
wet gel brand portfolio saw double digit growth with market share gain of
1039bps in last 12 months to 55%. The company re-launched (new product and
change in packaging & positioning) the deodorants portfolio with a new brand
ambassador Ranveer Singh to gain volume and value market share which stood
at 4% in 1QFY17 and 3% in the past 12 months. The Livon Hair Gain franchise
with a better product formulation and packaging grew in double digits. The
brand communication showcasing real life consumer experiences and the anti-
counterfeit measures adopted by the brand are starting to show results. The
Company has also refreshed Livon Serum- better formulation, refreshed
packaging, celebrity brand ambassador, new communication campaign and low
unit packs at INR 5. Management believes that positive results will follow over
the next couple of quarters.
International Business: 4% constant currency growth
International sales registered a 4% constant currency growth and reported
growth of 6% owing to forex changes.
Bangladesh
revenues reported 6% decline in constant currency terms in 1QFY17
mainly due to price corrections in Parachute coconut oil which declined in sales
by 7% YoY with flat volume growth, while maintaining its 82% market share. The
value added hair oils (VAHO) portfolio posted 6% constant currency growth.
Marico expects non-coconut oil portfolio to account for 80% of incremental
growth in Bangladesh post FY17 with modest growth in coconut oil business.
South East Asia (majorly Vietnam)
sales grew by 15% in constant currency
terms (ex- Beauté Cosmétique Societé Par Actions -divested subsidiary of ICP
Vietnam). The Company continues to scale up its presence in neighboring
countries like Myanmar. Myanmar is poised to be a USD 7 million business by
end of the year.
Middle East and North Africa (MENA)
grew by 6% YoY (constant currency)
primarily. Middle East constant currency sales were flat owing to high base of
24% growth in 1QFY16. Egypt business started reporting positive growth in
4QFY16 and increase sharply again in 1QFY17 with constant currency sales
increasing by 21 YoY%
South Africa
grew by 8% (constant currency) despite tough macro conditions.
8 August 2016
4

Marico
Con-call highlights
Observation on results and outlook
Satisfactory quarter with broad based volume and earnings growth.
Comfortable with medium term margin decline as long as volume growth is
healthy and they invest in the business.
Rural 34% of sales now and LUPs will be one of the key driver of growth in rural.
Pre 2012 both rural and urban growth witnessed strong growth. Between 2012
and 2014 there was much faster growth in rural, which has slowed down in the
past 2 years. Green shoots in urban particularly in modern trade.
Monsoons will lead to lower inflation and also more money in the consumer’s
hands. DBT and 7
th
Pay Commission implementation will also help rural demand.
Parachute
In earlier two cycles had struggled to grow volumes in Parachute unlike now.
18% realization decline in India and 9% in Bangladesh.
Have developed extremely sophisticated pricing model and learnt from last two
cycles and also increased rural presence in Parachute. This has led to higher
growth in volumes compared to other hair oil peers. The management did point
out that coconut oil category has also grown unlike other hair oil segments.
Able to maximize volume growth and increase market share through the
sophisticated model with 80-90% accuracy.
Three sets of 6% price decreases in Parachute anniversarising in 1QFY18.
Guided volume growth of 5-7% for next 3 quarters in Parachute. Was 7% in
1QFY17.
Value growth in Parachute only from 4QFY17.
Why did they take price increase taken in July in Parachute? In anticipation of
cost increases? Copra 6-7% increase in August over July. But crude softer than
impact and monsoons good. Was going to take it in September anyway and was
preponed a bit.
Saffola
Volume growth target 10% in second half. Did 11% in 1QFY17.
What have they done right in Saffola? Differential regional pricing and new
communication. If RM costs increases willing to take up prices.
Exciting and power packed innovation pipeline in Saffola post September.
Oats doing well. Slowed down but still in double digits. Nevertheless,
management mentioned that they need to develop new brands in foods.
VAHO
VAHO broad based growth was witnessed across all brands.
VAHO 8-10% volume growth guidance this year. Was 9% in 1QFY17.
Youth business
Youth business continues to recover. Set Wet on a good wicket need to do more
work on Livon.
International business
Bangladesh improvement only in 2HFY17.
Middle East stable despite consumption headwinds.
8 August 2016
5

Marico
Egypt showing good recovery.
South East Asian business guided for double digit constant currency growth
going forward.
International business also guided for double digit constant currency growth in
2HFY17.
Other points
Slight increase in CSD receivables led to increase in receivables.
Believe GST will be beneficial over the long term.
Currently, Edible oils and Parachute excise nil and VAT is 5-6%. VAHO is 12.5%
VAT.
Total number of new ESOPs is capped at 0.6% of share capital over a 5 year
period.
Using technology for (a) Automatic distributor replenishment, (b) Sales system
ensuring all direct distribution model has SKU wise outlet wise sales enabling, (c)
more sophisticated PDAs with ads etc.
A&P guided for 11.5% to 12% of sales. Working on Project H which enables
more bang for the buck. Use data on outlet wise and SKU wise sales and will
track performance of A&P schemes.
Employee costs at 5.5% to 6% in the last 3-4 years will be maintained. Will use
ESOPs judiciously so that EPS impact is checked and employees are also
rewarded.
New launch Sarson (mustard) oil brand satisfactory. New brands take time to
grow.
Valuation & view
Volume growth while lower than anticipated was healthy across all domestic
segments, a positive surprise compared to peers. Strong gross margin growth
ensured EBITDA and PAT beat. While margin gains may not be as high in the
subsequent quarters with hardening input costs, changes to our model have
resulted in 2%/7% upgrade to our FY17/FY18 EPS forecasts.
Consistently strong volume growth performance in adverse environment,
healthy EPS growth, ROEs of close to 40% and high standards of disclosures and
corporate governance justify the premium valuations. Targeting 36xJune 2018
EPS, we get a target price of INR305. Maintain Neutral.
Exhibit 8: Change estimates by 2%/7%
Old
FY
Sales
EBITDA
PAT
FY17E
68,427
11,833
8,129
FY18E
79,545
13,742
9,482
FY17E
62,961
11,751
8,292
New
FY18E
75,257
14,270
10,178
Change
FY17E
FY18E
-8.0%
-5.4%
-0.7%
3.8%
2.0%
7.3%
Source: Company, MOSL
8 August 2016
6

Marico
Exhibit 9: Marico P/E (x)
45.0
37.0
29.0
21.0
13.0
5.0
24.9
10.6
PE (x)
Peak(x)
Avg(x)
42.7
Min(x)
42.7
Exhibit 10: Marico P/E premium vs. Sensex
180
150
120
90
60
30
0
-30
-60
Marico PE Relative to Sensex PE (%)
LPA (%)
144.3
49.5
Source: Company, MOSL
Source: Company, MOSL
Exhibit 1: Valuation Matrix of coverage universe
Company
Consumer
Asian Paints
Britannia
Colgate
Dabur*
Emami*
Godrej Consumer
GSK Consumer
Hind. Unilever
ITC
Jyothy Labs
Marico*
Nestle
Page Industries
Parag Milk Foods
Pidilite Inds.
P&G Hygiene
Radico Khaitan
United Spirits
Retail
Jubilant Foodworks
Shopper's Stop
Titan Company
Reco
Neutral
Buy
Buy
Neutral
Buy
Neutral
Neutral
Neutral
Buy
Buy
Neutral
Neutral
Buy
Neutral
Buy
Buy
Buy
Buy
Buy
Neutral
Neutral
Price
(INR)
1,149
3,152
1,016
293
1,149
1,571
6,305
929
250
290
300
6,852
14,172
324
729
6,695
91
2,238
1,208
382
420
Mkt Cap
(USD M)
16,494
5,658
4,137
7,716
3,904
8,004
3,968
30,089
45,162
785
5,791
9,887
2,366
341
5,594
3,252
180
4,867
1,185
470
5,575
EPS Growth YoY (%)
FY16 FY17E FY18E
25.0
41.9
6.9
17.5
17.7
24.4
20.7
12.9
-3.5
24.2
26.1
-7.3
21.0
-66.7
46.6
19.8
-2.6
LP
-6.0
19.3
-13.4
20.1
21.6
8.5
12.3
10.0
22.9
4.6
7.1
17.9
-6.7
14.6
-5.5
25.0
41.1
23.0
12.0
14.7
21.1
54.0
48.9
11.4
16.3
15.2
21.4
15.5
23.9
25.8
9.9
12.8
15.6
12.4
22.8
25.5
31.3
32.5
18.2
19.7
21.0
50.8
46.1
30.9
21.0
P/E (x)
EV/EBITDA (x)
ROE (%) Div. (%)
FY16 FY17E FY18E FY16 FY17E FY18E FY16
FY16
62.0
46.5
46.3
41.1
45.6
47.3
37.6
48.8
32.4
33.2
53.5
57.2
66.6
48.2
49.1
52.5
14.0
72.3
75.8
65.6
52.2
51.6
38.3
42.6
36.6
41.5
38.5
36.0
45.6
27.5
35.6
46.7
60.5
53.3
34.1
39.9
46.8
12.2
59.7
49.2
44.0
46.9
44.4
33.2
35.1
31.7
33.5
30.6
32.8
40.4
23.8
31.6
38.0
48.2
40.6
25.8
33.8
39.1
10.1
39.6
33.7
33.6
38.7
41.5
31.8
29.4
33.1
38.9
35.1
27.6
34.1
20.6
25.5
36.8
40.3
41.5
18.0
31.0
35.1
9.9
33.5
28.2
15.6
43.2
34.4
26.5
25.7
29.5
32.3
29.5
26.3
31.7
18.2
22.7
32.6
35.2
33.8
16.3
25.8
30.2
8.6
31.6
20.5
12.9
35.6
29.5
22.0
21.2
25.5
26.7
24.3
23.3
28.1
15.6
20.1
26.7
28.0
26.1
13.3
21.7
24.5
7.4
23.7
15.2
10.6
29.1
34.4
54.6
66.8
33.2
43.4
23.4
30.7
82.4
29.3
19.2
36.9
40.9
46.9
19.5
30.4
31.2
9.3
36.7
14.1
6.3
21.3
0.8
0.8
1.0
0.7
0.7
0.6
1.0
1.7
2.7
1.4
1.1
0.7
0.6
0.0
0.6
1.0
1.1
0.0
0.2
0.0
0.6
Note: For Nestle FY16 means CY15
Source: Company, MOSL
8 August 2016
7

Marico
Financials and Valuations
Income Statement
(INR Million)
Y/E March
2011
2012
2013
2014
2015
2016
2017E
2018E
Net Sales
31,283
39,682
45,843
46,762
57,203
60,148
62,961
75,257
17.6
26.8
15.5
2.0
22.3
7.0
4.7
19.5
Change (%)
COGS
16,671
21,787
22,414
24,088
31,356
30,777
31,304
37,031
Gross Profit
14612
17895
23429
22674
25847
29371
31657
38226
Margin (%)
46.7
45.1
51.1
48.5
45.2
48.8
50.3
50.8
Operating Expenses
10,515
13,166
17,290
15,301
17,274
18,954
19,905
23,955
EBITDA
4,098
4,729
6,140
7,374
8,574
10,417
11,751
14,270
22.8
12.8
21.4
Change (%)
9.2
15.4
29.8
20.1
16.3
Margin (%)
13.1
11.9
13.4
15.8
15.0
17.3
18.7
19.0
Depreciation
708
725
866
769
843
949
1,058
1,157
Int. and Fin. Charges
393
424
580
345
230
206
106
100
Other Income - Recurring
279
440
494
685
716
1,030
1,098
1,344
Profit before Taxes
3,275
4,021
5,187
6,946
8,217
10,292
11,685
14,358
6.5
22.8
29.0
33.9
18.3
25.8
13.5
22.9
Change (%)
Margin (%)
10.5
10.1
11.3
14.9
14.4
17.1
18.6
19.1
Current Tax (excl MAT Ent)
534
709
1,186
1,793
2,383
3,054
3,385
4,171
Tax Rate (%)
25.9
19.5
28.2
27.4
28.8
29.7
29.0
29.1
Minority Interest
-50
-50
-98
-187
-114
-5
-8
-8
Profit after Taxes
2,375
3,189
3,627
4,854
5,735
7,233
8,292
10,178
-0.3
33.5
15.0
35.3
16.0
25.9
14.6
22.8
Change (%)
Margin (%)
7.6
8.0
7.9
10.4
10.0
12.0
13.2
13.5
Reported PAT
2,864
3,171
3,959
4,854
5,735
7,233
8,292
10,178
Note: We have adjusted FY16, FY17 and FY18 P&L numbers for Ind AS Impact. Since Ind AS Balance Sheet has not been shared we have
retained earlier numbers.
Balance Sheet
Y/E March
Share Capital
Reserves
Net Worth
Loans
Capital Employed
Gross Fixed Assets
Intangibles
Less: Accum. Depn.
Net Fixed Assets
Capital WIP
Goodwill
Investments
Current
Curr. Assets, L&A
Inventory
Account Receivables
Cash and Bank Balance
Others
Curr. Liab. and Prov.
Current Liabilities
Provisions
Net Current Assets
Deferred Tax Liability
Application of Funds
E: MOSL Estimates
2011
1,229
7,926
9,155
7,718
17,092
6,177
1,438
-3,366
4,250
648
3,976
890
890
12,203
6,011
1,880
2,131
2,181
5,175
4,098
1,077
7,028
301
17,092
2012
1,230
10,200
11,430
7,848
19,527
7,058
1,589
-4,031
4,617
402
3,955
2,957
2,957
14,017
7,202
2,083
1,321
3,411
6,643
5,446
1,197
7,374
223
19,527
2013
1,290
18,526
19,815
8,719
28,885
8,091
8,918
-4,261
12,748
1,477
3,955
1,516
1,515
17,377
8,627
1,966
2,668
4,117
8,129
6,919
1,210
9,247
-58
28,885
2014
1,290
12,317
13,606
6,798
20,762
8,614
1,020
-3,301
6,333
44
2,543
3,105
3,105
17,624
7,962
2,232
4,064
3,366
8,791
7,934
857
8,833
-96
20,762
2015
1,290
16,958
18,248
4,279
22,664
8,807
1,034
-3,973
5,868
30
4,892
2,838
2,838
17,625
9,947
1,768
2,049
3,861
8,511
7,471
1,040
9,115
-79
22,664
2016
1,290
19,678
20,968
3,317
24,428
9,267
1,060
-4,868
5,458
367
4,980
4,164
4,164
19,261
9,258
2,524
3,097
4,382
9,804
8,642
1,162
9,458
1
24,428
(INR Million)
2017E
1,290
22,612
23,902
3,767
27,669
10,707
1,020
-5,926
5,801
367
4,980
4,997
4,997
20,400
9,759
2,455
3,154
5,032
8,814
7,382
1,432
11,586
-62
27,669
2018E
1,290
26,583
27,873
4,217
32,090
11,707
1,020
-7,083
5,644
367
4,980
5,996
5,996
24,923
11,665
2,935
4,523
5,800
9,670
8,021
1,649
15,253
-150
32,090
8 August 2016
8

Marico
Financials and Valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout %
Valuation (x)
P/E
Cash P/E
EV/Sales
EV/EBITDA
P/BV
Dividend Yield (%)
Return Ratios (%)
RoE
RoCE
Working Capital Ratios
Debtor (Days)
Asset Turnover (x)
Leverage Ratio
Debt/Equity (x)
2011
1.9
2.9
7.5
0.3
17.1
2012
2.6
3.2
9.3
0.3
13.5
2013
2.8
3.7
15.4
0.3
8.9
2014
3.8
4.4
10.5
2.0
53.1
2015
4.4
5.1
14.1
1.2
28.1
2016
5.6
6.4
16.3
3.4
60.2
2017E
6.4
6.3
18.5
2.7
42.0
2018E
7.9
7.7
21.6
3.2
39.9
67.5
58.8
6.8
45.1
21.2
0.4
53.5
46.8
6.4
36.8
18.5
1.1
46.7
47.6
6.1
32.6
16.2
0.9
38.0
39.2
5.1
26.7
13.9
1.0
30.3
19.3
23.4
22
1.8
31.0
19.6
22.8
19
2.0
23.2
17.1
19.9
16
1.6
29.0
21.3
26.1
17
2.3
36.0
27.7
35.2
11
2.5
36.9
31.4
38.6
15
2.5
37.0
32.2
42.3
14
2.3
39.3
34.3
46.1
14
2.3
0.8
0.7
0.4
0.5
0.2
0.2
0.2
0.2
Cash Flow Statement
Y/E March
OP/(loss) before Tax
Int./Div. Received
Depreciation
Interest Paid
Direct Taxes Paid
(Incr)/Decr in WC
CF from Operations
(Incr)/Decr in FA
Free Cash Flow
(Pur)/Sale of Investments
CF from Invest.
(Incr)/Decr in Debt
Dividend Paid
Others
CF from Fin. Activity
Incr/Decr of Cash
Add: Opening Balance
Closing Balance
E: MOSL Estimates
2011
3,275
-279
708
393
-534
-1,178
2,386
-1,842
544
-63
-1,905
3,260
-472
-2,252
536
1,017
1,115
2,131
2012
4,021
-440
725
424
-709
-1,156
2,864
-787
2,077
-2,067
-2,853
130
-500
-450
-821
-810
2,131
1,321
2013
5,187
-494
866
580
-1,186
-527
4,427
-9,436
-5,009
1,440
-7,996
871
-385
4,429
4,915
1,346
1,321
2,667
2014
6,946
-685
769
345
-1,793
1,811
7,391
8,807
16,199
-1,589
7,218
-1,921
-2,673
-8,619
-13,213
1,397
2,668
4,064
2015
8,217
-716
843
230
-2,383
-2,296
3,895
-193
3,702
267
74
-2,519
-1,745
-1,720
-5,984
-2,015
4,064
2,049
2016
10,292
-1,030
949
206
-3,054
705
8,068
-822
7,246
-1,326
-2,148
-963
-5,025
1,115
-4,872
1,048
2,049
3,097
(INR Million)
2017E
11,685
-1,098
1,058
106
-3,385
-2,071
6,295
-1,401
4,894
-833
-2,234
450
-4,075
-379
-4,004
57
3,097
3,154
2018E
14,358
-1,344
1,157
100
-4,171
-2,298
7,801
-1,000
6,801
-999
-1,999
450
-4,754
-128
-4,432
1,369
3,154
4,523
8 August 2016
9

Marico
Corporate profile
Company description
Exhibit 1: Sensex rebased
Marico Limited is one of India's leading consumer
products companies operating in the beauty and
wellness space. Currently present in 25 countries
across emerging markets of Asia and Africa, Marico
has nurtured multiple brands in the categories of hair
care, skin care, health foods, male grooming, and
fabric care. Marico's India business markets household
brands such as Parachute Advansed, Saffola, Hair &
Care, Nihar, Mediker, Revive, Manjal, Setwet, Zatak
and Livon among others that add value to the life of 1
in every 3 Indians.
Exhibit 2: Shareholding pattern (%)
Jun-16
Promoter
DII
FII
Others
59.7
3.6
28.1
8.7
Mar-16
59.7
5.2
27.8
7.4
Jun-15
59.7
6.5
25.9
7.9
Source: Capitaline
Source: MOSL/Bloomberg
Exhibit 3: Top holders
Holder Name
Arisaig Partners Asia Pte Ltd. A/C Arisaig
India Fund Limited
LIC of India
Natl.Westmaster Bank Pil as Depos.of 1st
Sta.Asia Pac.Lead.Fund A Sub Fund of 1st
Sta.Invtmts.Icvc
Hasham Investment and Trading Co Pvt Ltd
% Holding
5.2
1.7
1.4
1.4
Source: Capitaline
Note: FII Includes depository receipts
Exhibit 4: Top management
Name
Harsh Mariwala
Saugata Gupta
Hemangi Ghag
Designation
Chairman
Managing Director &
CEO
Company Secretary
Exhibit 5: Directors
Name
Harsh Mariwala
Saugata Gupta
Rajen Mariwala
B S Nagesh*
Atul Choksey*
Name
Rajeev Bakshi*
Anand Kripalu*
Nikhil Khattau*
Hema Ravichandar*
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
Ashwin Solanki & Associates
Ernst & Young LLP
K R Chandratre
Price Waterhouse
Internal
Secretarial Audit
Statutory
Source: Capitaline
Type
Cost Auditor
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY17
FY18
MOSL
forecast
6.4
7.9
Consensus
forecast
6.6
7.7
Variation
(%)
-3.1
2.4
Source: Bloomberg
8 August 2016
10

Marico
NOTES
8 August 2016
11

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MARICO
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