Marico Limited
Marico Limited Fundamental Analysis
Marico Limited (MARICO.NS) shows moderate financial fundamentals with a PE ratio of 60.86, profit margin of 12.95%, and ROE of 42.71%. The company generates $137.1B in annual revenue with strong year-over-year growth of 12.12%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 74.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze MARICO.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMARICO.NS demonstrates superior asset utilization.
Valuation Score
WeakMARICO.NS trades at a premium to fair value.
Growth Score
ModerateMARICO.NS shows steady but slowing expansion.
Financial Health Score
ExcellentMARICO.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateMARICO.NS maintains healthy but balanced margins.
Key Financial Metrics
Is MARICO.NS Expensive or Cheap?
P/E Ratio
MARICO.NS trades at 60.86 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MARICO.NS's PEG of 7.36 indicates potential overvaluation.
Price to Book
The market values Marico Limited at 25.47 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 43.68 times EBITDA. This signals the market has high growth expectations.
How Well Does MARICO.NS Make Money?
Net Profit Margin
For every $100 in sales, Marico Limited keeps $12.95 as profit after all expenses.
Operating Margin
Core operations generate 15.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $42.71 in profit for every $100 of shareholder equity.
ROA
Marico Limited generates $17.49 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Marico Limited generates limited operating cash flow of $7.06B, signaling weaker underlying cash strength.
Free Cash Flow
Marico Limited produces free cash flow of $5.63B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.35 in free cash annually.
FCF Yield
MARICO.NS converts 0.52% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
60.86
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.36
vs 25 benchmark
P/B Ratio
Price to book value ratio
25.47
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.94
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.43
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.43
vs 25 benchmark
ROA
Return on assets percentage
0.17
vs 25 benchmark
ROCE
Return on capital employed
0.36
vs 25 benchmark
How MARICO.NS Stacks Against Its Sector Peers
| Metric | MARICO.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 60.86 | 21.15 | Worse (Expensive) |
| ROE | 42.71% | 1132.00% | Weak |
| Net Margin | 12.95% | -3187.00% (disorted) | Strong |
| Debt/Equity | 0.13 | 0.80 | Strong (Low Leverage) |
| Current Ratio | 1.43 | 2.37 | Neutral |
| ROA | 17.49% | -578641.00% (disorted) | Strong |
MARICO.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Marico Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
47.15%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
58.68%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
11.29%
Industry Style: Defensive, Dividend, Low Volatility
High Growth