Stock Price Analysis and Valuations-

Figure 5 (a) 5 (b)

5 (c)

Figure 5 (a) – Stock price movement of Marico Ltd., (b) Stock price movement of NIFTY 50, (c) Stock price movement of NIFTY FMCG Index
Source – investing.com
DATE PREV. CLOSE CLOSE
23-Aug-21 537.9 528.4
As the stock market started to rise, the stock price of Marico Ltd 20-Aug-21 523.7 537.9
13-Aug-21 515.95 515.3
was also positively impacted. From June to August 2021, the 06-Aug-21 531.9 524.35
share price of the company increased by 9.9%. Also, being one of 29-Jul-21 530.15 527.85
22-Jul-21 529.9 529.2
the leading FMCG companies of India, Marico’s share price 14-Jul-21 531.35 532.05
07-Jul-21 526.3 532.45
movement was in sync with the share price movement of NIFTY
29-Jun-21 509.55 537.7
FMCG. 22-Jun-21 520 515.85
15-Jun-21 494.8 506.15
08-Jun-21 489.3 488.1
From August, 2021, the share price movement of NIFTY FMCG
01-Jun-21 475.2 480.7
Index started to rise as majority of the top FMCG companies Table 6 – Weekly stock price of Marico Ltd.
Source – Moneycotrol
posted a good performance in the 1 quarter of FY2021-22.
st

So, for now one can have a neutral call in buying/selling Marico’s shares. Or one can also have a buy
rating for Marico’s share as sales of coconut oil, refined edible oil, and food was impressive in the first
quarter coupled with expected growth of FMCG sector in coming months.

Marico is likely to maintain its profitable volume-led growth. Since the domestic market trends have
improved, Marico expects rural consumption to bounce back. Marico will create another stream of growth
through its digital-first brand portfolio, which includes Beardo and Just Herbs. Therefore, Investors with a
long-term view can accumulate Marico’s share.

Recent announcements by Marico Ltd.-

 In July, 2021, Marico announced the 1st quarter results for the FY2021-22.
 On July 21, 2021, Marico acquired 52.4% equity stake in Apcos Naturals Private Limited, and
consequently Apcos became the subsidiary of Marico. The acquisition of the equity stake by
Marico will be carried out over a period of 2 years through primary infusion and secondary
buyouts. Apcos Naturals owns the ‘Just Herbs’ brand of Ayurvedic hair and skin products.

 On 1st July 2020, Marico has topped the charts amongst all FMCG companies in CRISIL’s
recently launched ‘ESGauge’ – the ESG performance scores
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 On 1st July 2020, Marico acquired the remaining 55% share (45% share were purchased earlier in
March 2017) of Zed Lifestyle and hence fully acquired Beardo, a startup company which operates
into the men’s grooming market. This made Zed Lifestyle to become a wholly-owned subsidiary
of Marico Ltd. Following the acquisition by Marico, Venture Catalysts (VCats) - an integrated
incubator and accelerator platform announced a complete exit from Zed Lifestyle. Beardo had a
turnover of Rs 78.49 crore in FY 2019-20 from the sales of beard oils, beard waxes, soaps, and
other products.
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Dividend-

With increase in operating cash flows and an endeavor to maximise the returns to for its shareholders,
Marico increased its dividend payout to 750% in FY21 as compared to 675% in FY20. The overall
dividend payout ratio in FY21 stood at 83% of the consolidated profit after tax (excl. one-offs).

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References –

https://economictimes.indiatimes.com/industry/cons-products/fmcg/fmcg-revenue-growth-to-doubling-to-
10-12-this-fiscal-crisil/articleshow/84785181.cms

http://www.businessworld.in/article/Hit-By-Second-COVID-Wave-FMCG-Sales-In-Rural-Mkts-To-Slow-
Down-This-Fiscal-Wipro-Consumer-Care/08-07-2021-395838/

https://marico.com/investorspdf/annual-report-fy-2020-21.pdf

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https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=52008

https://www.moneycontrol.com/india/stockpricequote/personal-care/marico/M13

https://in.investing.com/equities/marico

https://dea.gov.in/sites/default/files/MER%20July%202021.pdf

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