FINANCIAL

MODEL
About the Company
Marico (BSE: 531642, NSE: "MARICO") is one of India's leading consumer products companies, in
the global beauty and wellness space. In FY 2022-23, Marico recorded a turnover of about USD 1.2
billion through its products sold in India and chosen markets in Asia and Africa.
Marico touches the lives of 1 out of every 3 Indians, through its portfolio of brands such as
Parachute, Saffola, Saffola FITTIFY Gourmet, Saffola ImmuniVeda, Saffola Mealmaker, Hair & Care,
Parachute Advansed, Nihar Naturals, Mediker, Pure Sense, Coco Soul, Revive, Set Wet, Livon, Just
Herbs, True Elements and Beardo. The international consumer products portfolio contributes to
about 23% of the Group’s revenue, with brands like Parachute, Parachute Advansed, HairCode,
Fiancée, Caivil, Hercules, Black Chic, Code 10, Ingwe, X-Men, Purité de Prôvence, Ôliv, Thuan Phat
and Isoplus.

The Model Includes :

- Historical Financial Statements
- Common Size Statement
- Ratio Analysis
- Forecasted Growth of - Sales, EBITDA and EPS
- Return Of Markets
- Intrinsic Growth Rate
- Calculation of ROIC
- Calculation of WACC
- Calculation of PV of FCFF
- Comparable Company Valuation
- Regression Analysis
- Football Feild Analysis

DISCLAIMER : The model is made as a part of educational assignment and is meant for educational purpose only. The author of the
report is not liable for any losses due to actions taken based on this report. It is advisable to consult SEBI registered research analyst
before making any investment . - Ekta Bhatt
 Historical Financial Statement - MARICO Ltd.
Years March 17 March 18 March 19 March 20 March 21 March 22 March 23
# Income Statement Figures in Crores
Sales ₹5,917.79 ₹6,322.00 ₹7,334.00 ₹7,315.00 ₹8,048.00 ₹9,512.00 ₹9,764.00
Sales Growth - 6.83% 16.01% (0.26%) 10.02% 18.19% 2.65%

COGS ₹3,534.00 ₹4,094.00 ₹4,832.00 ₹4,576.00 ₹5,172.00 ₹6,374.00 ₹6,004.00

COGS In Sales 59.72% 64.76% 65.88% 62.56% 64.26% 67.01% 61.49%

Gross Profits ₹2,383.79 ₹2,228.00 ₹2,502.00 ₹2,739.00 ₹2,876.00 ₹3,138.00 ₹3,760.00

Gross Margin 40.28% 35.24% 34.12% 37.44% 35.74% 32.99% 38.51%

Selling and adm. Expenses ₹1,224.52 ₹1,091.00 ₹1,177.00 ₹1,270.00 ₹1,287.00 ₹1,457.00 ₹1,950.00
S&G Expenses in sales 20.69% 17.26% 16.05% 17.36% 15.99% 15.32% 19.97%

EBITDA ₹1,159.27 ₹1,137.00 ₹1,325.00 ₹1,469.00 ₹1,589.00 ₹1,681.00 ₹1,810.00

EBITDA margins 19.59% 17.98% 18.07% 20.08% 19.74% 17.67% 18.54%

Interest ₹16.58 ₹16.00 ₹40.00 ₹50.00 ₹34.00 ₹39.00 ₹56.00

Interest % in sales 0.28% 0.25% 0.55% 0.68% 0.42% 0.41% 0.57%

Depreciation ₹90.30 ₹89.00 ₹131.00 ₹140.00 ₹139.00 ₹139.00 ₹155.00

Depreciation % in sales 1.53% 1.41% 1.79% 1.91% 1.73% 1.46% 1.59%

Earnings Before Tax (EBT) ₹1,052.39 ₹1,032.00 ₹1,154.00 ₹1,279.00 ₹1,416.00 ₹1,503.00 ₹1,599.00
EBT % Sales 17.78% 16.32% 15.73% 17.48% 17.59% 15.80% 16.38%

Tax ₹337.73 ₹290.00 ₹126.00 ₹331.00 ₹324.00 ₹346.00 ₹421.00

Effective Tax Rate 32.09% 28.10% 10.92% 25.88% 22.88% 23.02% 26.33%

Net Profit ₹714.66 ₹742.00 ₹1,028.00 ₹948.00 ₹1,092.00 ₹1,157.00 ₹1,178.00

Net Margins 12.08% 11.74% 14.02% 12.96% 13.57% 12.16% 12.06%

Adjusted no. of Equity Shares 129 129 129 129 129 129 129

EPS ₹5.53 ₹5.74 ₹7.95 ₹7.33 ₹8.44 ₹8.95 ₹9.11

EPS Growth - 3.83% 38.54% (7.78%) 15.19% 5.95% 1.82%

Dividend Per Share ₹3.49 ₹4.24 ₹4.74 ₹6.73 ₹7.48 ₹9.23 ₹4.49
Dividend Payout Ratio 63.20% 73.89% 59.61% 91.85% 88.60% 103.13% 49.28%

Retained Earnings 36.80% 26.11% 40.39% 8.15% 11.40% - 50.72%

# BALANCE SHEET Figures in Crores

Equity Share Capital ₹129.05 ₹129.00 ₹129.00 ₹129.00 ₹129.00 ₹129.00 ₹129.00
Reserves ₹2,196.63 ₹2,414.00 ₹2,846.00 ₹2,894.00 ₹3,111.00 ₹3,219.00 ₹3,670.00
Borrowings ₹238.80 ₹312.00 ₹352.00 ₹338.00 ₹511.00 ₹479.00 ₹608.00
Other Liabilities ₹1,058.73 ₹1,217.00 ₹1,569.00 ₹1,603.00 ₹1,675.00 ₹1,850.00 ₹2,539.00
Total Liabilities ₹3,623.21 ₹4,072.00 ₹4,896.00 ₹4,964.00 ₹5,426.00 ₹5,677.00 ₹6,946.00

Fixed Asset Net Block ₹1,084.70 ₹1,110.00 ₹1,300.00 ₹1,396.00 ₹1,612.00 ₹1,760.00 ₹2,246.00
Capital Work In Progress ₹11.16 ₹27.00 ₹45.00 ₹58.00 ₹24.00 ₹39.00 ₹67.00
Investments ₹608.21 ₹543.00 ₹450.00 ₹733.00 ₹854.00 ₹828.00 ₹1,096.00
Other Assets ₹182.75 ₹340.00 ₹621.00 ₹579.00 ₹478.00 ₹407.00 ₹541.00
Total Non Current Assets ₹1,886.82 ₹2,020.00 ₹2,416.00 ₹2,766.00 ₹2,968.00 ₹3,034.00 ₹3,950.00

Receivables ₹246.99 ₹340.00 ₹517.00 ₹539.00 ₹388.00 ₹652.00 ₹1,015.00

Inventory ₹1,253.44 ₹1,511.00 ₹1,411.00 ₹1,380.00 ₹1,126.00 ₹1,412.00 ₹1,225.00
Cash & Bank ₹235.96 ₹201.00 ₹552.00 ₹279.00 ₹944.00 ₹579.00 ₹756.00
Total Current Asset ₹1,736.39 ₹2,052.00 ₹2,480.00 ₹2,198.00 ₹2,458.00 ₹2,643.00 ₹2,996.00

Total Asset ₹3,623.21 ₹4,072.00 ₹4,896.00 ₹4,964.00 ₹5,426.00 ₹5,677.00 ₹6,946.00

CHECK TRUE TRUE TRUE TRUE TRUE TRUE TRUE

# CASH FLOW STATEMENT Figures in Crores

Cash From Operating Activities ₹648.73 ₹516.00 ₹1,062.00 ₹1,214.00 ₹2,007.00 ₹1,016.00 ₹1,419.00
Cash From Investing Activities ₹(125.29) ₹59.00 ₹(367.00) ₹(22.00) ₹(933.00) ₹441.00 ₹(929.00)
Cash From Financing Activities ₹(573.95) ₹(567.00) ₹(698.00) ₹(1,147.00) ₹(1,058.00) ₹(1,290.00) ₹(560.00)
Net Cash Flow ₹(50.51) ₹8.00 ₹(3.00) ₹45.00 ₹16.00 ₹167.00 ₹(70.00)
 Common Size Income Statement - MARICO Ltd.
Particulars March 17 March 18 March 19 March 20 March 21 March 22 March 23
Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Raw Material Cost 41.06% 49.49% 49.45% 42.00% 46.67% 52.48% 53.15%
Change in Inventory 0.96% 3.48% 1.68% (1.91%) (0.58%) 1.22% (1.65%)
Power and Fuel 0.50% 0.54% 0.50% 0.49% 0.34% 0.34% -
Other Mfr. Exp 12.26% 11.53% 11.25% 11.62% 9.59% 9.25% -
Employee Cost 6.86% 6.68% 6.35% 6.53% 7.08% 6.16% 6.69%
Selling and admin 19.58% 24.61% 23.19% 26.40% 24.35% 24.84% 8.62%
Other Expenses 1.11% (7.36%) (7.14%) (9.04%) (8.36%) (9.52%) 11.35%
Other Income 1.63% 1.34% 1.40% 1.30% 1.33% 1.03% 1.47%
Depreciation 1.53% 1.41% 1.79% 1.91% 1.73% 1.46% 1.59%
Interest 0.28% 0.25% 0.55% 0.68% 0.42% 0.41% 0.57%
Profit before tax 19.41% 17.67% 17.14% 18.78% 18.92% 16.83% 17.85%
Tax 5.71% 4.59% 1.72% 4.52% 4.03% 3.64% 4.31%
Net profit 13.49% 12.88% 15.19% 13.96% 14.56% 12.88% 13.33%
Dividend Amount 7.63% 8.67% 8.35% 11.90% 12.02% 12.54% 5.95%

Common Size Income Statement - MARICO Ltd.

Particulars March 17 March 18 March 19 March 20 March 21 March 22 March 23
Total Liabilities 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Equity Share Capital 3.56% 3.17% 2.63% 2.60% 2.38% 2.27% 1.86%
Reserves 60.63% 59.28% 58.13% 58.30% 57.34% 56.70% 52.84%
Borrowings 6.59% 7.66% 7.19% 6.81% 9.42% 8.44% 8.75%
Other Liabilities 29.22% 29.89% 32.05% 32.29% 30.87% 32.59% 36.55%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Net Block 29.94% 27.26% 26.55% 28.12% 29.71% 31.00% 32.34%
Capital Work in Progress 0.31% 0.66% 0.92% 1.17% 0.44% 0.69% 0.96%
Investments 16.79% 13.33% 9.19% 14.77% 15.74% 14.59% 15.78%
Other Assets 52.97% 58.74% 63.34% 55.94% 54.11% 53.73% 50.92%
Receivables 6.82% 8.35% 10.56% 10.86% 7.15% 11.48% 14.61%
Inventory 34.59% 37.11% 28.82% 27.80% 20.75% 24.87% 17.64%
Cash & Bank 6.51% 4.94% 11.27% 5.62% 17.40% 10.20% 10.88%
 Ratio Analysis - MARICO Ltd.
Particulars March 17 March 18 March 19 March 20 March 21 March 22 March 23 Trend Mean Median

SALES Growth - 6.83% 16.01% (0.26%) 10.02% 18.19% 2.65% 8.91% 8.43%
EBITDA Growth - (1.92%) 16.53% 10.87% 8.17% 5.79% 7.67% 7.85% 7.92%
EBT Growth - (1.94%) 11.82% 10.83% 10.71% 6.14% 6.39% 7.33% 8.55%
Net Profit Growth - 3.83% 38.54% (7.78%) 15.19% 5.95% 1.82% 9.59% 4.89%
Dividend Growth - 21.38% 11.76% 42.11% 11.11% 23.33% (51.35%) 16.57%

Gross Margin 40.28% 35.24% 34.12% 37.44% 35.74% 32.99% 38.51% 36.33% 35.74%
EBITDA Margin 19.59% 17.98% 18.07% 20.08% 19.74% 17.67% 18.54% 18.81% 18.54%
Operating Margin/EBIT Margin 18.06% 16.58% 16.28% 18.17% 18.02% 16.21% 16.95% 17.18% 16.95%
EBT Margin 17.78% 16.32% 15.73% 17.48% 17.59% 15.80% 16.38% 16.73% 16.38%
Net Profit Margin 12.08% 11.74% 14.02% 12.96% 13.57% 12.16% 12.06% 12.66% 12.16%

Sales Expenses %Sales 20.69% 17.26% 16.05% 17.36% 15.99% 15.32% 19.97% 17.52% 17.26%
Depreciation %Sales 1.53% 1.41% 1.79% 1.91% 1.73% 1.46% 1.59% 1.63% 1.59%
Operating Income % Sales 18.06% 16.58% 16.28% 18.17% 18.02% 16.21% 16.95% 17.18% 16.95%

Return on Capital Employed 41.68% 36.71% 35.89% 39.54% 38.66% 40.29% 37.55% 38.62% 38.66%
Retained Earnings% 36.80% 26.11% 40.39% 8.15% 11.40% - 50.72% 24.80% 26.11%
Return on Equity% 30.73% 29.18% 34.55% 31.36% 33.70% 34.56% 31.01% 32.16% 31.36%
Self Sustained Growth Rate 11.31% 7.62% 13.96% 2.56% 3.84% - 15.73% 7.86% 7.62%
Interest Coverage Ratio 64.47x 65.50x 29.85x 26.58x 42.65x 39.54x 29.55x 42.59x 39.54x

Debtor Turnover Ratio 23.96x 18.59x 14.19x 13.57x 20.74x 14.59x 9.62x 16.47x 14.59x
Creditor Turnover Ratio 5.59x 5.19x 4.67x 4.56x 4.80x 5.14x 3.85x 4.83x 4.80x
Inventory Turnover Ratio 4.72x 4.18x 5.20x 5.30x 7.15x 6.74x 7.97x 5.89x 5.30x
Fixed Asset Turnover 5.46x 5.70x 5.64x 5.24x 4.99x 5.40x 4.35x 5.25x 5.40x
Capital Turnover Ratio 2.54x 2.49x 2.47x 2.42x 2.48x 2.84x 2.57x 2.54x 2.49x

Debtor Days 15 Days 20 Days 26 Days 27 Days 18 Days 25 Days 38 Days 24 Days 25 Days
Payable Days 77 Days 87 Days 70 Days 69 Days 51 Days 54 Days 46 Days 65 Days 69 Days
Inventory Days 77 Days 87 Days 70 Days 69 Days 51 Days 54 Days 46 Days 65 Days 69 Days
Cash Conversion Cycle 13 Days 16 Days 19 Days 19 Days 13 Days 17 Days 21 Days 17 Days 17 Days

CFO/Sales 10.96% 8.16% 14.48% 16.60% 24.94% 10.68% 14.53% 14.34% 14.48%
CFO/Total Assets 17.90% 12.67% 21.69% 24.46% 36.99% 17.90% 20.43% 21.72% 20.43%
CFO/Total Debt 17.90% 12.67% 21.69% 24.46% 36.99% 17.90% 20.43% 21.72% 20.43%
 Sales Forecasting - MARICO Ltd. EBITDA Forecasting - MARICO Ltd. Common Size
EPSIncome
Forecasting
Statement
- MARICO
- MARICO
Ltd. Ltd.
Weightage Year Sales Growth Weightage Year EBITDA Growth Weightage Year EPS Growth
1 2017 A ₹5,917.79 - 1 2017 A ₹1,159.27 - 1 2017 A ₹5.53 -
2 2018 A ₹6,322.00 6.83% 2 2018 A ₹1,137.00 (1.92%) 2 2018 A ₹5.74 3.83%
3 2019 A ₹7,334.00 16.01% 3 2019 A ₹1,325.00 16.53% 3 2019 A ₹7.95 38.54%
4 2020 A ₹7,315.00 (0.26%) 4 2020 A ₹1,469.00 10.87% 4 2020 A ₹7.33 (7.78%)
5 2021 A ₹8,048.00 10.02% 5 2021 A ₹1,589.00 8.17% 5 2021 A ₹8.44 15.19%
6 2022 A ₹9,512.00 18.19% 6 2022 A ₹1,681.00 5.79% 6 2022 A ₹8.95 5.95%
7 2023 A ₹9,764.00 2.65% 7 2023 A ₹1,810.00 7.67% 7 2023 A ₹9.11 1.82%
8 2024 E ₹10,406.49 6.58% 8 2024 E ₹1,924.92 6.35% 8 2024 E ₹10.10 10.89%
9 2025 E ₹11,071.94 6.39% 9 2025 E ₹2,042.93 6.13% 9 2025 E ₹10.73 6.24%
10 2026 E ₹11,737.39 6.01% 10 2026 E ₹2,160.94 5.78% 10 2026 E ₹11.36 5.88%
11 2027 E ₹12,402.84 5.67% 11 2027 E ₹2,278.94 5.46% 11 2027 E ₹11.99 5.55%
12 2028 E ₹13,068.29 5.37% 12 2028 E ₹2,396.95 5.18% 12 2028 E ₹12.62 5.26%

Sales Forecasting EBITDA Forecasting EPS Forecasting

₹14,000.00 ₹3,000.00 ₹14.00
₹12,000.00 ₹2,500.00 ₹12.00
₹10,000.00 ₹2,000.00 ₹10.00
₹8,000.00 ₹8.00
₹1,500.00
₹6,000.00 ₹6.00
₹1,000.00 ₹4.00
₹4,000.00
₹2,000.00 ₹500.00 ₹2.00
- - -
2024 E
2025 E
2026 E
2027 E
2028 E

2024 E
2025 E
2026 E
2027 E
2028 E
2017 A
2018 A
2019 A
2020 A
2021 A
2022 A
2023 A

2017 A
2018 A
2019 A
2020 A
2021 A
2022 A
2023 A
2024 E
2025 E
2026 E
2027 E
2028 E
2017 A
2018 A
2019 A
2020 A
2021 A
2022 A
2023 A
Comparable Company Valuation Amount in crores

Market Data Financials Valuation

Share Shares Equity Net Enterprise Net EV/ EV/
Company Price Outstanding Value Debt Value Revenue EBIDTA Income Revenue EBIDTA P/E
Godrej Consumer ₹1,062.95 ₹102.27 ₹108,707.90 ₹738.86 ₹109,447.09 ₹13,315.97 ₹2,396.87 ₹1,702.46 8.22x 45.66x 63.85x
Dabur India ₹586.50 ₹177.20 ₹103,927.80 ₹847.87 ₹104,777.70 ₹11,529.89 ₹2,190.68 ₹1,701.33 9.09x 47.83x 61.09x
Marico ₹539.45 ₹129.32 ₹69,761.67 ₹(148.00) ₹69,612.45 ₹9,764.00 ₹1,855.16 ₹1,322.00 7.13x 37.52x 52.77x
Emami ₹413.65 ₹44.12 ₹18,250.24 ₹(94.24) ₹18,153.93 ₹3,405.73 ₹851.43 ₹627.41 5.33x 21.32x 29.09x
Jyothy Labs ₹233.60 ₹36.72 ₹8,577.79 ₹(236.93) ₹8,341.06 ₹2,486.02 ₹323.18 ₹239.72 3.36x 25.81x 35.78x
Bajaj Consumer ₹195.90 ₹14.46 ₹2,832.71 ₹(9.84) ₹2,822.98 ₹960.87 ₹144.13 ₹139.22 2.94x 19.59x 20.35x
High 9.1x 47.8x 63.9x
75th Percentile 7.9x 43.6x 59.0x
Average 6.0x 33.0x 43.8x
Median 6.2x 31.7x 44.3x
25th Percentile 3.8x 22.4x 30.8x
Low 2.9x 19.6x 20.3x

Marico Comparable Valuation EV/Revenue EV/EBIDTA P/E

Implied Enterprise Value 60829.3 58746.3 58385.1
Net Debt -148.0 -148.0 -148.0
Implied Market Value 60977.3 58894.3 58533.1
Share Outstanding 129.3 129.3 129.3
Implied Value per share 471.5 455.4 452.6
Overvalued Overvalued Overvalued

Source: The Valuation School, Screener.in

 Calculation of ROIC - MARICO Ltd.
Particulars Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Current Assets :
Inventories ₹926.00 ₹1,253.00 ₹1,511.00 ₹1,411.00 ₹1,380.00 ₹1,126.00 ₹1,412.00
Trade receivables ₹252.00 ₹247.00 ₹340.00 ₹517.00 ₹539.00 ₹388.00 ₹652.00
Cash Equivalents ₹317.00 ₹236.00 ₹201.00 ₹552.00 ₹279.00 ₹944.00 ₹579.00
Short term loans ₹5.00 ₹6.00 ₹4.00 ₹6.00 ₹5.00 ₹6.00 ₹5.00
Other asset items ₹228.00 ₹177.00 ₹336.00 ₹615.00 ₹574.00 ₹472.00 ₹402.00
Total Current Assets ₹1,728.00 ₹1,919.00 ₹2,392.00 ₹3,101.00 ₹2,777.00 ₹2,936.00 ₹3,050.00

Current Liabilities :
Trade Payables ₹669.00 ₹697.00 ₹822.00 ₹944.00 ₹950.00 ₹1,134.00 ₹1,344.00
Advance from Customers ₹27.00 ₹23.00 ₹23.00 ₹30.00 ₹20.00 ₹41.00 ₹27.00
Other liability items ₹299.00 ₹326.00 ₹360.00 ₹583.00 ₹620.00 ₹482.00 ₹422.00
Total Current Liabilities ₹995.00 ₹1,046.00 ₹1,205.00 ₹1,557.00 ₹1,590.00 ₹1,657.00 ₹1,793.00

Net Working Capital ₹733.00 ₹873.00 ₹1,187.00 ₹1,544.00 ₹1,187.00 ₹1,279.00 ₹1,257.00

Non-Current Assets
Land ₹50.00 ₹49.00 ₹48.00 ₹71.00 ₹74.00 ₹73.00 ₹81.00
Building ₹266.00 ₹276.00 ₹291.00 ₹560.00 ₹617.00 ₹597.00 ₹620.00
Plant Machinery ₹272.00 ₹359.00 ₹401.00 ₹470.00 ₹583.00 ₹590.00 ₹671.00
Equipments ₹10.00 ₹13.00 ₹17.00 ₹18.00 ₹20.00 ₹23.00 ₹26.00
Furniture n fittings ₹12.00 ₹14.00 ₹20.00 ₹21.00 ₹28.00 ₹32.00 ₹36.00
Vehicles ₹2.00 ₹3.00 ₹4.00 ₹4.00 ₹5.00 ₹6.00 ₹6.00
Intangible Assets ₹519.00 ₹502.00 ₹543.00 ₹554.00 ₹573.00 ₹830.00 ₹945.00
Other fixed assets ₹11.00 ₹45.00 ₹45.00 ₹36.00 ₹40.00 ₹53.00 ₹138.00
Gross Block ₹1,142.00 ₹1,260.00 ₹1,369.00 ₹1,734.00 ₹1,940.00 ₹2,204.00 ₹2,523.00
Accumulated Depreciation ₹85.00 ₹167.00 ₹249.00 ₹434.00 ₹540.00 ₹592.00 ₹763.00
Net Non-Current Assets ₹1,057.00 ₹1,093.00 ₹1,120.00 ₹1,300.00 ₹1,400.00 ₹1,612.00 ₹1,760.00
Invested Capital ₹1,790.00 ₹1,966.00 ₹2,307.00 ₹2,844.00 ₹2,587.00 ₹2,891.00 ₹3,017.00
EBIT ₹1,068.97 ₹1,048.00 ₹1,194.00 ₹1,329.00 ₹1,450.00 ₹1,542.00 ₹1,655.00
ROIC 59.72% 53.31% 51.76% 46.73% 56.05% 53.34% 54.86%

Calculation of Re-Investment Rate- MARICO Ltd.

Particulars Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Capex ₹(81.00) ₹(128.00) ₹(143.00) ₹(180.00) ₹(137.00) ₹(129.00) ₹(157.00)
Change In Working Captal ₹140.00 ₹314.00 ₹357.00 ₹(357.00) ₹92.00 ₹(22.00) ₹(1,257.00)
EBIT ₹1,068.97 ₹1,048.00 ₹1,194.00 ₹1,329.00 ₹1,450.00 ₹1,542.00 ₹1,655.00
Marginal Tax 25% 25% 25% 25% 25% 25% 25%
EBIT(1-t) ₹801.73 ₹786.00 ₹895.50 ₹996.75 ₹1,087.50 ₹1,156.50 ₹1,241.25
Reinvestment ₹59.00 ₹186.00 ₹214.00 ₹(537.00) ₹(45.00) ₹(151.00) ₹(1,414.00)
Reinvestment Rate 7.36% 23.66% 23.90% (53.88%) (4.14%) (13.06%) (113.92%)

4 Year Average (18.58%)

4 Year Median (4.14%)

Calculation of Intrinsic Growth Rate- MARICO Ltd.

Particulars Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Re-investment Return 7.36% 23.66% 23.90% (53.88%) (4.14%) (13.06%) (113.92%)
ROIC 59.72% 53.31% 51.76% 46.73% 56.05% 53.34% 54.86%
Intrinsic Growth 4.39% 12.61% 12.37% (25.18%) (2.32%) (6.96%) (62.49%)

4 Year Average (9.65%)

4 Year Median (2.32%)
 WACC - MARICO Ltd.
Debt/ Debt/ Levered Unlevered
1 2 3
Company country total debt total equity tax rate Equity Capital Beta Beta

Godrej Consumer India ₹1,129.58 ₹108,707.90 30.00% 1.04% 95.76% 0.58 1.25
Dabur India India ₹1,173.79 ₹103,927.80 30.00% 1.13% 95.91% 0.72 1.39
Marico India ₹608.00 ₹69,761.67 30.00% 0.87% 92.40% 0.55 1.20
Emami India ₹90.51 ₹18,250.24 30.00% 0.50% 64.42% 0.52 0.97
Jyothy Labs India ₹46.54 ₹8,577.79 30.00% 0.54% 48.21% 0.50 0.84
Bajaj Consumer India ₹9.29 ₹2,832.71 30.00% 0.33% 15.67% 0.63 0.74
Average 30.00% 0.73% 68.73% 0.58 1.07
Median 30.00% 0.71% 78.41% 0.57 1.08

Cost Of Debt Cost Of Equiy

Risk Free Rate 6.50%

Pre-Tax Cost Of Debt 9.21% Equity Risk Premium 16.80%
4
Tax Rate 30.00% Levered Beta 0.55
Post Tax Cost Of Debt 6.45% Cost Of Equity 15.79%

Capital Structure Levered Data

Current Target Comps Median

Unlevered Beta 0.58474402
Total Debt 608.00 0.86% 0.73% Target Debt/Equity 0.74%
Market Capitalization
69761.67 99.14% 99.27% Tax Rate 30%
Total Capital 70369.7 100.00% 100% Levered Beta 0.59

Debt/Equity 0.87% 0.74% Weighted Average Cost Of Capital

Notes Cost Of Equity 15.79%

1. Tax Rate Considered as Margin Tax Rate for The Country Equity Weight 99.27%
2. Levered Beta Is Based On 5 Year Monthly Data
3. Unlevered Beta = Levered Beta/(1+(1-Tax Rate)*debt/Equity) Cost Of Debt 6.45%
4. levered Beta = Unlevered*(1+(1-Tax Rate)*Debt/Equity) Debt Weight 0.73%

WACC 15.72%
 Senstivity Analysis - MARICO Ltd.
Particulars Mar-23 Mar-24 Mar-25 Mar-26 Mar-27 Mar-28
EBIT ₹1,655.00 ₹1,871.97 ₹2,117.39 ₹2,394.98 ₹2,708.96 ₹3,064.10
Tax Rate 25% 25% 25% 25% 25% 25%
EBIT(1-t) ₹1,241.25 ₹1,403.98 ₹1,588.04 ₹1,796.23 ₹2,031.72 ₹2,298.08
Less : Re- investment Rate (4.14%) 3.87% 11.88% 19.89% 27.90% 27.90%
Free Cash Flow To Firm(FCFF) ₹1,292.61 ₹1,349.62 ₹1,399.36 ₹1,438.95 ₹1,464.87 ₹1,656.91
Mid Year Convection 0.5 1.5 2.5 3.5 4.5
Discounting Factor 0.930 0.803 0.694 0.600 0.518
P.V. of FCFF - ₹1,254.58 ₹1,124.07 ₹998.81 ₹878.64 ₹858.78
Calculation Of Terminal Value Senstivity Analysis
₹93.68 12% 14% 15.72% 18% 20%
FCFF(n+1) ₹1,874.13 3% 104.52465 89.349885 89.349885 71.14017 65.248792
WACC 15.72% 4% 114.9573 96.178528 96.178528 74.717078 68.010375
Terminal Growth Rate 5.38% 5.38% 114.9573 96.178528 96.178528 74.717078 68.010375
6% 146.25524 114.9573 114.9573 83.659349 74.717078
Terminal Value ₹18,117.05 7% 171.2936 128.3707 128.3707 89.349885 78.84428
Calculation Of Equity Value Per Share Inputs Used
P.V. of Future Cash Flows ₹5,114.88 Expected Growth 13.11%
P.V. of Terminal value ₹9,390.14 Terminal Growth 5.38%
Value of Operating Asset ₹14,505.02 WACC 15.72%
Add: Cash ₹756.00
Less: Debt ₹3,147.00 Notes
Value Of Equity ₹12,114.02 1. Sector Re- investment rate is assumed as the company's re-inventment rate.
no. of equity shares 129 2. Expected growth rate is also taken as same as that of the sector.
Equity value per share ₹93.68 3. Long Term Debt Growth Rate is taken as the terminal Growth rate.

share price ₹539.45

Discount/premium 4.76x Source: rbi.org.in, Screener.in
 Football Field Analysis (Valuation Summary) - MARICO Ltd.

Football Field Analysis - Valuation Summary

600.00 ₹ 558.75

500.00 ₹ 471.52

₹ 452.62 ₹ 462.70
400.00

300.00

200.00 ₹ 171.29
₹ 128.37

100.00 ₹ 78.84
₹ 104.52
₹ 89.34
₹ 65.24
0.00
Comps DCF Bear DCF Base DCF Bull 52 W H/L

Football Field Analysis (DATA) - MARICO Ltd.

Open Low Low Open High High
Comps 452.6222 452.6222 471.5224 471.5224
DCF Bear 65.24 65.24 78.84 78.84
DCF Base 89.34 89.34 128.37 128.37
DCF Bull 104.52 104.52 171.29 171.29
52 W H/L 462.7 462.7 558.75 558.75
 Beta Calculation & Regression Analysis - MARICO Ltd.

Marico Ltd. - Weekly Returns Nifty - Weekly Returns Beta Drifting

Date Closing Price Returns Closing Price Returns Beta 0.55

12-07-21 524.700012 - ₹15,923.40 -
19-07-21 533.950012 1.76% ₹15,856.05 (0.42%) Levered Raw Beta 0.55
26-07-21 546.700012 2.39% ₹15,763.05 (0.59%) Beta Weight 75%
02-08-21 524.349976 (4.09%) ₹16,238.20 3.01%
09-08-21 515.299988 (1.73%) ₹16,529.10 1.79% Market Beta 1
16-08-21 537.900024 4.39% ₹16,450.50 (0.48%) Market Beta Weight 25%
23-08-21 524.950012 (2.41%) ₹16,705.20 1.55%
30-08-21 560.799988 6.83% ₹17,323.60 3.70% Adjusted Beta 0.664833074
06-09-21 575 2.53% ₹17,369.25 0.26%
13-09-21 560.099976 (2.59%) ₹17,585.15 1.24%
20-09-21 557.349976 (0.49%) ₹17,853.20 1.52% SUMMARY OUTPUT
27-09-21 549.549988 (1.40%) ₹17,532.05 (1.80%)
04-10-21 563.799988 2.59% ₹17,895.20 2.07% Regression Statistics
11-10-21 579.299988 2.75% ₹18,338.55 2.48% Multiple R 0.357922
18-10-21 562.75 (2.86%) ₹18,114.90 (1.22%) R Square 0.128108
25-10-21 568.450012 1.01% ₹17,671.65 (2.45%) Adjusted R Square 0.119643
01-11-21 557.849976 (1.86%) ₹17,916.80 1.39% Standard Error 0.028753
08-11-21 546.799988 (1.98%) ₹18,102.75 1.04% Observations 105
15-11-21 541.799988 (0.91%) ₹17,764.80 (1.87%)
22-11-21 543.549988 0.32% ₹17,026.45 (4.16%) ANOVA
29-11-21 531.75 (2.17%) ₹17,196.70 1.00% df SS MS F Significance F
06-12-21 526.349976 (1.02%) ₹17,511.30 1.83% Regression 1 0.012511612 0.012512 15.13394584 0.00017776
13-12-21 500.350006 (4.94%) ₹16,985.20 (3.00%) Residual 103 0.085152681 0.000827
20-12-21 505.600006 1.05% ₹17,003.75 0.11% Total 104 0.097664293
27-12-21 512.650024 1.39% ₹17,354.05 2.06%
03-01-22 504.25 (1.64%) ₹17,812.70 2.64% CoefficientsStandard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
10-01-22 499.549988 (0.93%) ₹18,255.75 2.49% Intercept -0.00047 0.002822724 -0.16621 0.868320877 -0.00606736 0.005129054 -0.00606736 0.005129054
17-01-22 477.850006 (4.34%) ₹17,617.15 (3.50%) X Variable 1 0.553111 0.142179186 3.890237 0.00017776 0.271131884 0.835089647 0.271131884 0.835089647
24-01-22 471.5 (1.33%) ₹17,101.95 (2.92%)
31-01-22 510.549988 8.28% ₹17,516.30 2.42%
07-02-22 499.299988 (2.20%) ₹17,374.75 (0.81%)
14-02-22 504.75 1.09% ₹17,276.30 (0.57%)
21-02-22 494.850006 (1.96%) ₹16,658.40 (3.58%)
28-02-22 501.049988 1.25% ₹16,245.35 (2.48%)
07-03-22 507.549988 1.30% ₹16,630.45 2.37%
14-03-22 524.099976 3.26% ₹17,287.05 3.95%
# Returns On Markets

Year Annual
2000 (14.65%) Average Return 15.41%
2001 (16.18%) Dividend Yied 1.39%
2002 3.25% Total Market Return 16.80%
2003 71.90%
2004 10.68%
2005 36.34%
2006 39.83% RATE OF MARKET RETURNS
2007 54.77% 100.00%
2008 (51.79%) 80.00%
2009 75.76% 60.00%
2010 17.95% 40.00%
2011 (24.62%) 20.00%
-
2012 27.70%
(20.00%)
2013 6.76% (40.00%)
2014 31.39% (60.00%)
2015 (4.06%)
2016 3.01%
2017 28.65%
2018 3.15%
2019 12.02%
2020 14.17%
2021 24.12%
2022 4.32%