key data results in line; ad spends to go up

Edelweiss Research is also available on www.edelweissresearch.com, Bloomberg - EDEL, Thomson Reuters, and Factset Edelweiss Securities Limited

KEY DATA

Rating HOLD Sector relative Neutral Price (INR) 564 12 month price target (INR) 580 Market cap (INR bn/USD bn) 729/9.7 Free float/Foreign ownership (%) 40.4/23.7

What’s Changed Target Price

Rating/Risk Rating ⚊

QUICK TAKE

Results in line; ad spends to go up

Marico’s Q2FY22 revenue, EBITDA and PAT growth of 21.6%, 8.7% and 8.4% YoY, respectively, met our estimates. Domestic volume was up 8% YoY on a soft base of 11% YoY. Saffola foods sustained its healthy run – up 70% YoY – with both core and new franchises pitching in. Parachute volumes grew 7% YoY, with 180bps volume market share gain. International business (IB) posted healthy 13% YoY (cc) growth.

Overall, we like Marico from a long-term standpoint. However, given the company is entering a period of high base, not to mention more aggression from Dabur under its new MD, we would wait before getting constructive on Marico. Maintain ‘HOLD’ with a revised TP of INR580.

FINANCIALS (INR mn)

Year to March FY21A FY22E FY23E FY24E

Revenue 80,480 94,721 1,04,276 1,13,847

EBITDA 15,910 18,471 20,960 23,794

Adjusted profit 11,860 14,365 16,579 18,826

Diluted EPS (INR) 9.2 11.1 12.8 14.6

EPS growth (%) 10.5 21.1 15.4 13.6

RoAE (%) 38.3 40.4 40.2 40.3

P/E (x) 61.4 50.7 43.9 38.7

EV/EBITDA (x) 45.0 38.6 33.8 29.6

Dividend yield (%) 1.3 1.2 1.4 1.6

PRICE PERFORMANCE

Steady growth

What we like: Parachute saw 7% YoY volume growth, and 18% YoY value growth

with 180bps YoY volume market share gain. VAHO grew 16% YoY with 40bps YoY

volume market share gain. Saffola foods grew 70% YoY led by penetration gains and

oats, which grew 36% YoY. International business grew 13% YoY on constant

currency basis. Traditional trade stayed firm on a high base.

What we don’t like: EBITDA and gross margin compressed 207bps and 556bps YoY

respectively. Saffola refined edible oils was subdued mainly by trade destocking and

partly due to lower in-home consumption.

Other highlights: Male grooming, and Livon serum grew in double digits. Beardo is

on way to INR1000mn exit for the year. Soya chunks have gained 20% market share.

Q2FY22 conference call: Key takeaways

Despite moderation in growth, rural outpaced urban during the quarter and on a 2-

year CAGR basis. The company gained MS in 90% of the portfolio on an MAT basis.

Copra price is under control and will be range-bound. Saffola Oodles is scaling up

well in GT and MT. The company expects to report double-digit revenue growth with

mid-single-digit volume growth in H2FY22. EBITDA margin to rise Q4FY22 onwards.

Explore:

Outlook and valuation: Robust sales growth; maintain ‘HOLD’

We expect the revenue trajectory to continue to be robust. Competitive intensity

(we expect Adani Wilmar to become even more aggressive post listing) in the hair oil

category needs to be monitored. Rolling forward the valuation to Mar-23E, we are

revising up the TP to INR580 (earlier INR550) while maintaining ‘HOLD/SN’.

Financials Year to March Q2FY22 Q2FY21 % Change Q1FY22 % Change

Net Revenue 24,190 19,890 21.6 25,250 (4.2)

EBITDA 4,230 3,890 8.7 4,810 (12.1)

Adjusted Profit 3,090 2,850 8.4 3,560 (13.2)

Diluted EPS (INR) 2.4 2.2 8.4 2.8 (13.2)

Above In line Below

Profit

Margins

Revenue Growth

Overall

39,000

43,600

48,200

52,800

57,400

62,000

350

400

450

500

550

600

Oct-20 Jan-21 Apr-21 Jul-21 Oct-21

MRCO IN Equity Sensex

India Equity Research Consumer Staples October 28, 2021

MARICO RESULT UPDATE

Abneesh Roy Tushar Sundrani Amritasai Sista +91 (22) 6620 3141 +91 (22) 6620 3004 [email protected] [email protected] [email protected]

Corporate access

Financial model Podcast

Video

https://www.edelweissresearch.com/Research/Company?Id=2932

https://www.edelweissresearch.com/Podcasts?Search=marico&FromDate=&ToDate=

https://www.edelweissresearch.com/CorporateAccess

https://www.edelweissresearch.com/Videos

MARICO

Edelweiss Securities Limited

2 Edelweiss Research is also available on www.edelweissresearch.com, Bloomberg - EDEL, Thomson Reuters, and Factset

Financial Statements

Income Statement (INR mn) Year to March FY21A FY22E FY23E FY24E

Total operating income 80,480 94,721 1,04,276 1,13,847

Gross profit 37,780 43,572 49,218 54,419

Employee costs 5,700 6,346 6,778 7,400

Other expenses 9,190 10,704 11,679 12,523

EBITDA 15,910 18,471 20,960 23,794

Depreciation 1,390 1,349 1,419 1,624

Less: Interest expense 340 323 328 335

Add: Other income 940 1,618 2,042 2,301

Profit before tax 15,120 18,417 21,255 24,137

Prov for tax 3,240 4,052 4,676 5,310

Less: Other adj 130 0 0 0

Reported profit 11,990 14,365 16,579 18,826

Less: Excp.item (net) (130) 0 0 0

Adjusted profit 11,860 14,365 16,579 18,826

Diluted shares o/s 1,291 1,291 1,291 1,291

Adjusted diluted EPS 9.2 11.1 12.8 14.6

DPS (INR) 7.5 6.7 7.7 8.8

Tax rate (%) 21.4 22.0 22.0 22.0

Important Ratios (%) Year to March FY21A FY22E FY23E FY24E

Other exp (% of rev) 11.4 11.3 11.2 11.0

Con A&P (% of rev) 8.7 8.5 9.4 9.4

Gross margin (%) 46.9 46.0 47.2 47.8

EBITDA margin (%) 19.8 19.5 20.1 20.9

Net profit margin (%) 14.7 15.2 15.9 16.5

Revenue growth (% YoY) 10.0 17.7 10.1 9.2

EBITDA growth (% YoY) 8.2 16.1 13.5 13.5

Adj. profit growth (%) 10.5 21.1 15.4 13.6

Assumptions (%) Year to March FY21A FY22E FY23E FY24E

GDP (YoY %) (8.0) 9.0 7.0 7.0

Repo rate (%) 4.0 4.0 4.3 5.3

USD/INR (average) 75.0 73.0 72.0 71.0

Domestic vol growth (2.0) 7.5 7.5 7.5

Intl business growth 12.0 14.4 9.3 9.3

COGS % of sales (con) 53.1 54.0 52.8 52.2

Staff cost (% of rev) 7.1 6.7 6.5 6.5

Dep- % of gross block 12.5 11.0 10.5 11.0

Yield on cash 4.6 9.0 10.0 9.5

Valuation Metrics Year to March FY21A FY22E FY23E FY24E

Diluted P/E (x) 61.4 50.7 43.9 38.7

Price/BV (x) 22.5 18.8 16.6 14.7

EV/EBITDA (x) 45.0 38.6 33.8 29.6

Dividend yield (%) 1.3 1.2 1.4 1.6

Source: Company and Edelweiss estimates

Balance Sheet (INR mn) Year to March FY21A FY22E FY23E FY24E

Share capital 1,290 1,290 1,290 1,290

Reserves 31,110 37,361 42,501 48,337

Shareholders funds 32,400 38,651 43,791 49,627

Minority interest 180 180 180 180

Borrowings 3,480 2,980 2,480 1,980

Trade payables 11,340 12,612 13,576 14,654

Other liabs & prov 4,370 4,370 4,370 4,370

Total liabilities 53,240 60,263 65,866 72,280

Net block 7,690 3,296 3,127 2,752

Intangible assets 8,430 8,430 8,430 8,430

Capital WIP 240 250 250 250

Total fixed assets 16,360 11,976 11,807 11,432

Non current inv 2,260 2,260 2,260 2,260

Cash/cash equivalent 15,720 18,159 21,962 26,609

Sundry debtors 3,880 5,190 5,714 6,238

Loans & advances 510 510 510 510

Other assets 13,700 21,358 22,804 24,420

Total assets 53,240 60,263 65,866 72,280

Free Cash Flow (INR mn) Year to March FY21A FY22E FY23E FY24E

Reported profit 11,990 14,365 16,579 18,826

Add: Depreciation 1,390 1,349 1,419 1,624

Interest (net of tax) 340 323 328 335

Others (340) 0 0 0

Less: Changes in WC 7,300 (7,696) (1,005) (1,063)

Operating cash flow 20,680 8,341 17,320 19,722

Less: Capex (1,250) (1,260) (1,250) (1,250)

Free cash flow 19,430 7,081 16,070 18,472

Key Ratios Year to March FY21A FY22E FY23E FY24E

RoE (%) 38.3 40.4 40.2 40.3

RoCE (%) 44.3 48.1 48.9 49.8

Inventory days 107 108 130 130

Receivable days 21 17 19 19

Payable days 90 85 87 87

Working cap (% sales) 1.7 9.6 9.6 9.8

Gross debt/equity (x) 0.1 0.1 0.1 0

Net debt/equity (x) (0.4) (0.4) (0.4) (0.5)

Interest coverage (x) 42.7 53.0 59.6 66.3

Valuation Drivers Year to March FY21A FY22E FY23E FY24E

EPS growth (%) 10.5 21.1 15.4 13.6

RoE (%) 38.3 40.4 40.2 40.3

EBITDA growth (%) 8.2 16.1 13.5 13.5

Payout ratio (%) 361.1 477.3 519.1 660.9


MARICO

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Trends at a glance

Key growth rates Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22

Domestic volume 6.0 1.0 (1.0) (3.0) (14.0) 11.0 15.0 25.0 21.0 8.0

Parachute coconut oil in rigid packs 9.0 (1.0) (2.0) (8.0) (11.0) 10.0 8.0 29.0 12.0 7.0

Value added hair oil 7.0 0.1 (7.0) (11.0) (30.0) 4.0 21.0 22.0 34.0 NA

Saffola 3.0 1.0 11.0 25.0 16.0 20.0 17.0 17.0 24.0 NA

International* 9.0 8.0 8.0 (5.0) 2.0 12.0 11.0 25.0 20.0 14.0

Modern Trade * 30.0 29.0 12.0 44.0 (17.0) (12.0) 0.1 (17.0) 10.0 NA

E-commerce * 100.0 75.0 5.0 29.0 37.0 39.0 88.0 81.0 61.0 NA

Rural *# 6.0 (3.0) (2.0) (15.0) (10.0) 22.0 24.0 42.0 17.0 NA

Urban *# (5.0) (11.0) (7.0) (12.0) (17.0) 14.0 10.0 23.0 17.0 NA

CSD * NA 5.0 14.0 (18.0) (48.0) (29.0) (10.0) 59.0 56.0 NA

Premium hair nourishment *# 28.0 7.0 (5.0) (19.0) NA NA NA NA NA NA

Male grooming * 0.1 (1.0) (1.0) (9.0) NA NA NA NA NA NA

Saffola healthy foods * 38.0 34.0 37.0 22.0 30.0 55.0 74.0 134.0 100.0 70.0

Source: Company

* Reported value growth (% YoY) in INR

# for Q2FY20 onwards reported in volume terms (% YoY)

Summary of growth (%)

Category / Business - Reported growth (%) Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Share of Group’s Turnover

basis FY21 results

Group: total reported value growth 8.7 16.3 34.0 31.0 22.0

FMCG business (India) 8.0 18.0 37.0 35.0 24.0 77.0

Parachute coconut oil in rigid packs 8.0 9.0 38.0 20.0 18.0 38.0

Value added hair oil (1.0) 21.0 22.0 35.0 16.0 22.0

Saffola (refined edible oil) 16.0 26.0 43.0 60.0 46.0 22.0

International business group: total 12.0 11.0 25.0 20.0 14.0 23.0

Source: Company

*Q1FY22 onwards Saffola refers to the Saffola franchise, comprising Refined Edible Oils and Foods

Constant currency growth in international business

Region - Constant currency growth Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22

Bangladesh 10.0 16.0 15.0 20.0 9.0 16.0

Middle East and North Africa (27.0) (6.0) (1.0) 62.0 74.0 20.0

South Africa (25.0) 16.0 7.0 48.0 52.0 8.0

South East Asia (17.0) 4.0 3.0 13.0 16.0 (2.0)

New geographies - Srilanka, Nepal & Bhutan (16.0) (5.0) 16.0 18.0 67.0 50.0

Source: Company

Q2FY22 conference call: Key takeaways

Overall

Company gained market share in more than 90% of the portfolio in the India

business on MAT basis.

Modern trade is showing signs of recovery

Rural saw some moderation towards the end of the quarter

MARICO



Both franchises of the Premium Personal Care (contributing less than 5% of

revenues) witnessed improving traction and posted double-digit growth.

Livon Serums moved ahead of pre-COVID run rates, while Male Grooming is still

to attain the pre-COVID run rates.

Beardo and Just Herbs scaled up in line with expectations

More time is needed to conclude any trend in rural consumption

High global inflation and supply chain challenges are important monitorables

No disruption in diversification journey in India and abroad

Company is focusing on chemist and food outlets in urban areas

We may see a high single digit volume growth in Q4FY22

Company has decided to discontinue VAHO and Saffola volume disclosure due to

change in KPI internally and competitive reasons

Company will continue to indicate Saffola and VAHO volumes

Company is seeing recovery in discretionary spends from consumers

Company expects good growth from GT channel

Company remains confident on INR5000mn target for digital channel

Company aim is to progressively bring down dependence on commodity based

products like Parachute, Saffola and Amla hair oil

Parachute and VAHO

Parachute Rigids grew 7% YoY in volumes, backed by increasing penetration in

both core and non-core markets.

Volume market share of the brand rose by 180 bps YoY in rigid packs (MAT

Sep’21)

Value Added Hair Oils delivered value growth of 16% YoY, largely driven by

volumes.

Mid and premium segment brands gained salience during the quarter.

The Company gained 40 bps YoY in volume market share (MAT Sep’21)

Company will continue to chase 10% YoY volume growth in VAHO

Company will look at more value growth and value added segment in VAHO

Saffola

Saffola Edible Oils had a muted quarter, largely due to volatility in edible oil prices

(leading to trade destocking during the quarter) and partly owing to lower in-

home consumption.

Saffola Foods grew by ~70% YoY in value terms, with both core and new

franchises pitching in

The base Oats franchise grew by 36% YoY in value terms backed by increased

penetration and market share gains


MARICO


Saffola Honey is tracking in line with internal targets and should reach an exit run

rate of INR1000mn this year

Saffola Oodles and Saffola Mealmaker Soya Chunks also continued to scale up

well.

The new Saffola Chyawanprash, launched under the Immuniveda range, comes

with a renewed mix based on the learnings from the earlier avatar

Adoption of chyawanprash category in South India has improved

The Saffola franchise, comprising Refined Edible Oils and Foods, grew 46% YoY in

value terms.

International business

In the International business, Bangladesh clocked 16% YoY constant currency

growth.

South East Asia was down 2% YoY in constant currency terms, due to the severe

COVID surge and strict lockdowns enforced in the region.

MENA and South Africa grew 20% YoY and 8% YoY in constant currency terms

There is relatively lesser impact on international business margins

Margins

Advertising & Sales Promotion spends was at 8% of sales, as the Company

maintained its investments in core franchises and recent foods innovations.

Ad spends will rise in the forthcoming quarters.

Copra price was down 11% sequentially and down 5% YoY.

With the supply outlook improving, prices are expected to remain range bound

in the near term.

COVID-19 led disruptions and major weather anomalies in key growing regions

led to sustained inflation in global vegetable oil prices.

Rice Bran oil was up 59% YoY and 7% sequentially in line with global trends.

The reduction in the import duty on vegetable oils is yet to reflect in domestic

vegetable oil prices, but some correction is expected in the coming quarters

Crude oil remains inflationary

Gross margin will improve sequentially

Medium term margin guidance remains unchanged

Company has started a series of measures from August to tackle inflation, some

of its effect will show in Q4FY22

MARICO



Outlook and valuation: Robust sales growth; maintain ‘HOLD’

We like Marico’s focus on improving volumes over the long term and market share

gains, a strategy that management has adhered to over the past few years. Even as

the company has had an eye on market share, it compromised on margin. However,

incrementally, we believe the company needs to get much more aggressive on

innovation and push its products across channels.

The focus on innovation is good—be it in the healthy foods segment with the launch

of Nashta range, Saffola FITTIFY range, Saffola Active Soups, Saffola Active Slimming

Nutri-Shake, Saffola Masala Oats and Saffola Honey.

In the international business too, Bangladesh remains strong. Political turmoil,

currency devaluation and overall macroeconomic challenges—although receding—

persist in the MENA region.

We expect revenue trajectory to continue to be robust following management

interventions. Competitive intensity in the hair oil category, which is susceptible to

down-trading, needs to be monitored. Rolling forward the valuation to Mar-23E, we

are revising up the TP to INR580 (earlier INR550) while maintaining ‘HOLD/SN’. The

stock is trading at 43.9x FY23E EPS.

One year PE chart

Source: Edelweiss Research

100

220

340

460

580

700

Oct

-17

Ap

r-1

8

Oct

-18

Ap

r-1

9

Oct

-19

Ap

r-2

0

Oct

-20

Ap

r-2

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Oct

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(IN

R)

40x

45x

50x

25x

30x

35x


MARICO


Standalone financial performance (INR mn)

(INR mn) Q2FY22 Q2FY21 % YoY change Q1FY22 % QoQ change

Net Sales 19,160 15,500 23.6 20,430 (6.2)

Total 19,160 15,500 23.6 20,430 (6.2)

COGS 12,040 8,790 37.0 13,180 (8.6)

Gross Profit 7,120 6,710 6.1 7,250 (1.8)

Employee cost 960 870 10.3 990 (3.0)

Advt. and promotion 1,160 1,140 1.8 1,040 11.5

Other Expenditure 2,040 1,900 7.4 1,810 12.7

Total expenses 4,160 3,910 6.4 3,840 8.3

EBITDA 2,960 2,800 5.7 3,410 (13.2)

Depreciation 230 260 (11.5) 240 (4.2)

EBIT 2,730 2,540 7.5 3,170 (13.9)

Other inc 1,280 1,450 (11.7) 290 341.4

Interest net 80 50 60.0 60 33.3

Exceptional Items (330) NM - NM

PBT 3,930 3,610 8.9 3,400 15.6

Tax 640 470 36.2 770 (16.9)

Reported PAT 3,290 3,140 4.8 2,630 25.1

EPS 2.5 2.4 4.8 2.0 25.1

As % of net sales

COGS 62.8 56.7 613 64.5 (167)

Employee 5.0 5.6 (60) 4.8 16

Advt.and promotion 6.1 7.4 (130) 5.1 96

Other expenditure 10.6 12.3 (161) 8.9 179

EBITDA 15.4 18.1 (262) 16.7 (124)

PAT 17.2 20.3 (309) 12.9 430

Tax Rate 16.3 13.0 327 22.6 (636)

Source: Company

MARICO



Financial snapshot (INR mn)

Year to March Q2FY22 Q2FY21 % change Q1FY22 % change YTD22 FY22E FY23E

Total income from operations 24,190 19,890 21.6 25,250 (4.2) 49,440 94,721 1,04,276

Cost of goods sold 13,920 10,340 34.6 14,890 (6.5) 28,810 51,150 55,058

Gross profit 10,270 9,550 7.5 10,360 (0.9) 20,630 43,572 49,218

Staff cost 1,530 1,370 11.7 1,500 2.0 3,030 6,346 6,778

Advert. & sales promotion 1,940 1,890 2.6 1,750 10.9 3,690 8,051 9,802

Other expenditure 2,570 2,400 7.1 2,300 11.7 4,870 10,704 11,679

Total expenditure excl COGS 6,040 5,660 6.7 5,550 8.8 11,590 25,101 28,259

EBITDA 4,230 3,890 8.7 4,810 (12.1) 9,040 18,471 20,960

Depreciation, amort. & imp. 330 330 0.0 330 0.0 660 1,349 1,419

EBIT 3,900 3,560 9.6 4,480 (12.9) 8,380 17,122 19,540

Interest Expense 100 80 25.0 80 25.0 180 323 328

Other income 250 270 (7.4) 270 (7.4) 520 1,618 2,042

Profit Before Tax 4,050 3,750 8.0 4,670 (13.3) 8,720 18,417 21,255

Provision for Tax 890 690 29.0 1,020 (12.7) 1,910 4,052 4,676

Minority Interest 70 90 NM 90 NM 160 0 0

Exceptional Items (Net of Tax) 0 -330 0 0 0 0

Reported Profit 3,090 2,640 17.0 3,560 (13.2) 6,650 14,365 16,579

Adjusted Profit 3,090 2,850 8.4 3,560 (13.2) 6,650 14,365 16,579

No. of Shares outstanding (mn) 1,290 1,290 1,290 1,290 1,291 1,291

Adjusted Diluted EPS 2.4 2.2 8.4 2.8 (13.2) 5.2 11.1 12.8

as % of net revenues

COGS 57.5 52.0 556 59.0 -143 58.3 54.0 52.8

Staff expenses 6.3 6.9 -56 5.9 38 6.1 6.7 6.5

Advert. & sales promotion 8.0 9.5 -148 6.9 109 7.5 8.5 9.4

Other expenditure 10.6 12.1 -144 9.1 152 9.9 11.3 11.2

EBITDA 17.5 19.6 -207 19.0 -156 18.3 19.5 20.1

EBIT 16.1 17.9 -178 17.7 -162 16.9 18.1 18.7

PBT 16.7 18.9 -211 18.5 -175 17.6 19.4 20.4

Adjusted Profit 12.8 14.3 -155 14.1 (133) 13.5 15.2 15.9

Tax rate 22.0 18.4 358 21.8 13 21.9 22.0 22.0

Source: Company, Edelweiss Research


MARICO


Company Description

Marico has evolved into one of the leading Indian FMCG companies from a coconut

oil manufacturer over the past few years. It has positioned itself on the beauty and

wellness platform and caters to hair care, health care, and skin care. Its brands

include Parachute, Parachute Advansed, Nihar, Nihar Naturals, Hair & Care, and

Fiancee in hair care, Saffola and Fittify range in Foods, Set Wet, Hair Code, X-Men in

Male Grooming. Marico has captured inorganic growth opportunities with

acquisition in Africa as well as Bangladesh.

Investment Theme

Marico is amongst the leading beneficiaries of the changing preference of Indian

consumer for better personal care and food products. The company has established

strong ground in its core categories (hair oil and edible oil) with dominant market

shares. It has been able to distinguish itself by offering niche products through

brands such as Saffola (flavoured oats), Livon while extending Parachute to various

new generation hair care products such as hair creams and value-added hair oils.

Improvement in sales and margins of international businesses are to aid

consolidated performance.

Key Risks

Coconut oil forms the biggest share of Marico’s top line and bottom line. Any

volatility in Copra prices tends to swing gross margins for Marico.

Appreciation of rupee against Egyptian pound, Bangladeshi currency and other

international currencies puts the growth in revenues and profits at risk.

MARICO



Additional Data Management

MD and CEO Mr. Saugata Gupta

CFO Mr. Pawan Agrawal

Chairman Mr. Harsh Mariwala

Director Mr. B S Nagesh

Auditor BSR & Co. LLP

Holdings – Top 10* % Holding % Holding

First State Inv 4.44 Vanguard Group 0.65

Life Insurance 2.03 Icici Prudentia 0.58

First Senior Gl 1.63 Uti Asset Manag 0.57

Blackrock 1.33 Bank Of Montrea 0.54

Bombay Oil Indu 0.66 Norges Bank 0.51

*Latest public data

Recent Company Research Date Title Price Reco

15-Sep-21 Déjà vu: GST hike in coconut oil?; Edel Flash

522 Hold

25-Aug-21 Ramping up e-commerce; Company Update

522 Hold

30-Jul-21 Gross margin disappoints; H2 brighter; Result Update

547 Hold

Recent Sector Research Date Name of Co./Sector Title

27-Oct-21 ITC Decent recovery; all eyes on panel; Result Update

25-Oct-21 Tata Consumer Products

Gross margin recovers; tea volume soft; Result Update

25-Oct-21 Colgate-Palmolive Modest growth continues; Result Update

Rating Interpretation

Source: Bloomberg, Edelweiss research

Daily Volume

Source: Bloomberg

Rating Distribution: Edelweiss Research Coverage

Buy Hold Reduce Total

Rating Distribution* 178 56 19 254

>50bn >10bn and <50bn <10bn Total

Market Cap (INR) 226 43 3 272

*1 stocks under review

Rating Rationale

Rating Expected absolute returns over 12 months

Buy: >15%

Hold: >15% and <-5%

Reduce: <-5%

TP392

TP379

TP420

225

300

375

450

525

600

Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Apr-21

(IN

R)

MRCO IN Equity Buy Hold Reduce0

6

12

18

24

30

Oct-18 Apr-19 Oct-19 Apr-20 Oct-20 Apr-21

(Mn

)


MARICO


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This Report has been prepared by Edelweiss Securities Limited in the capacity of a Research Analyst having SEBI Registration No.INH200000121 and distributed as per SEBI (Research Analysts) Regulations 2014. This report does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 includes Financial Instruments and Currency Derivatives. The information contained herein is from publicly available data or other sources believed to be reliable. This report is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this report should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in Securities referred to in this document (including the merits and risks involved), and should consult his own advisors to determine the merits and risks of such investment. The investment discussed or views expressed may not be suitable for all investors.

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Aditya Narain

Head of Research

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