Thursday, May 7, 2009

Marico

Sales have grown from around Rs. 6000 million to around Rs. 19000 million from 2000 to 2009. Profits have grown from Rs. 300 million to Rs. 1000 million from 2000 to 2009.

Marico has been earning a return of at least 25% on its net worth per year from 2000 to 2009. Marico has earnings per share of around Rs. 3.5 in the last 12 months.

Marico has a cash and bank balance of Rs. 249 million. It has net current assets of around Rs. 4000 million. It has investments of around Rs. 1000 million. It has a net worth of around Rs. 3000 million. It has a market capitalization of around Rs. 50000 million.

At a market price of around Rs. 87 and earnings of around Rs. 3.5 the rate of return is approximately 4.5% which is less than that of a fixed deposit which gets more than 4.5% currently. The company seems to be fairly priced at around Rs.87-88.

Marico makes Personal Care products like Parachute Oil which is a very well known brand. It has a Debt Equity Ratio of 0.84. Competitors are HUL, Dabur India, Colgate, Godrej Consumer and Godrej Ind.

No comments: