The numbers tell that Marico's growth is outstanding
07-05-2015 • About Marico (
$MARICO) • By InTwits
Marico is an attractive growth stock in Personal Products industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Marico showed fast growth in the last financial year. Marico's revenue surged on 22.3% in FY2015. Together with revenue growth Marico also managed to keep EBITDA growth. EBITDA grew 16.3% for the same period.
In the longer period Marico showed fast revenue growth of 12.9% from FY2012 to FY2015 annually. EBITDA surged on 22.0% from FY2012 to FY2015 annually.
Marico ($MARICO) financials for the last 5 years
| mln. INR | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Revenue | 31,350 | 39,797 | 45,962 | 46,865 | 57,330 |
|---|
| Revenue growth, % | | 26.9% | 15.5% | 2.0% | 22.3% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 4,187 | 4,864 | 6,368 | 7,591 | 8,828 |
|---|
| EBITDA growth, % | | 16.2% | 30.9% | 19.2% | 16.3% |
|---|
| EBITDA margin, % | 13.4% | 12.2% | 13.9% | 16.2% | 15.4% |
|---|
| Net Income | 2,864 | 3,171 | 3,959 | 4,854 | 5,735 |
|---|
| Net Income margin, % | 9.14% | 7.97% | 8.61% | 10.4% | 10.0% |
|---|
| |
| CAPEX | 1,841 | 1,021 | 9,915 | 774 | 591 |
|---|
| CAPEX/Revenue, % | 5.87% | 2.57% | 21.6% | 1.65% | 1.03% |
|---|
| Debt | 7,219 | 7,848 | 8,719 | 6,798 | 4,323 |
|---|
| Cash | 1,343 | 484 | 497 | 261 | 2,047 |
|---|
| Net Debt/EBITDA | 1.4x | 1.5x | 1.3x | 0.9x | 0.3x |
|---|
| |
| ROIC, % | 25.9% | 23.2% | 22.6% | 26.9% | 36.1% |
|---|
| ROE, % | 36.5% | 30.8% | 25.3% | 29.0% | 36.0% |
|---|
Profitability and return on investment
There was no change in EBITDA margin in FY2015, it stayed constant at 5.90%. If we look for the longer period EBITDA margin surged on 3.20 pp from 12.2% in FY2012 to 15.4% in FY2015.
Marico shows attractive ROIC at 36.1% for the last 12 months which assumes stable development model. Three years ago it was considerably lower at 23.2%. Average ROIC for the last three years was 28.5%.
Marico showed small Net Income margin decline of 0.400 pp from 10.4% to 10% in FY2015. If we look for the longer period Marico showed fast Net Income margin growth of 2 pp from 8% in FY2012 to 10% in FY2015.
Marico operates at ROE of 36.0%. Average ROE for the last three years was 30.1%.
Capital expenditures (CAPEX)
The company's CAPEX/Revenue was 1.03% in FY2015. Marico's CAPEX/Revenue dropped on 1.54 pp from 2.57% in FY2012 to 1.03% in FY2015. It's average level of CAPEX/Revenue for the last three years was 8.08%.
Leverage (Debt)
Marico has low debt level at 0.3x Net Debt/EBITDA - at the same time with high growth. In the last 3 years the company showed big decline in leverage of 1.26x from 1.51x in FY2012 to 0.26x in FY2015.
Management team
Saugata Gupta is a CEO of Marico and Vivek Karve is a CFO.
Peers in Personal Products
Below you can find Marico benchmarking vs. other companies in Personal Products industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Procter & Gamble Hygiene & Health Care ($PGHH) | -65.3% | 29.4% | 29.9% | 21.5% | |
| Godrej Consumer Products ($GODREJCP) | | 32.0% | 31.7% | 18.6% | 8.7% |
| Dabur India ($DABUR) | -56.2% | 29.3% | 16.3% | 15.0% | |
| Colgate-Palmolive (India) ($COLPAL) | -55.8% | 17.8% | 17.5% | 13.1% | |
| Hindustan Unilever ($HINDUNILVR) | -60.1% | 17.0% | 14.5% | 8.4% | |
| |
|---|
| Median (7 companies) | -56.2% | 23.5% | 17.5% | 13.1% | 8.7% |
|---|
| Marico ($MARICO) | | 26.9% | 15.5% | 2.0% | 22.3% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Emami ($EMAMILTD) | 21.8% | 20.9% | 20.5% | 24.3% | |
| Bliss Gvs Pharma ($BLISSGVS) | | 27.2% | 28.1% | 20.9% | |
| Procter & Gamble Hygiene & Health Care ($PGHH) | 16.6% | 16.3% | 15.4% | 20.7% | |
| Colgate-Palmolive (India) ($COLPAL) | 22.6% | 21.7% | 21.0% | 18.6% | |
| Hindustan Unilever ($HINDUNILVR) | 14.0% | 15.2% | 16.0% | 16.6% | |
| |
|---|
| Median (7 companies) | 18.2% | 18.1% | 16.0% | 18.6% | 16.6% |
|---|
| Marico ($MARICO) | 13.4% | 12.2% | 13.9% | 16.2% | 15.4% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Bliss Gvs Pharma ($BLISSGVS) | | 8.7% | 5.0% | 16.7% | |
| Colgate-Palmolive (India) ($COLPAL) | 1.8% | 3.8% | 4.9% | 9.0% | |
| Procter & Gamble Hygiene & Health Care ($PGHH) | 5.5% | 4.2% | 2.2% | 7.2% | |
| Emami ($EMAMILTD) | 4.0% | 8.0% | 5.0% | 3.6% | |
| Dabur India ($DABUR) | 22.7% | 4.4% | 3.9% | 3.0% | |
| |
|---|
| Median (7 companies) | 4.7% | 4.2% | 4.1% | 3.6% | 2.6% |
|---|
| Marico ($MARICO) | 5.9% | 2.6% | 21.6% | 1.7% | 1.0% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Hindustan Unilever ($HINDUNILVR) | 96.0% | 99.9% | 114.4% | 133.0% | |
| Colgate-Palmolive (India) ($COLPAL) | 134.8% | 121.4% | 120.4% | 104.4% | |
| Emami ($EMAMILTD) | 28.2% | 31.5% | 36.7% | 43.3% | |
| Procter & Gamble Hygiene & Health Care ($PGHH) | 25.2% | 28.1% | 30.3% | 43.2% | |
| Dabur India ($DABUR) | 36.5% | 29.4% | 28.7% | 30.8% | |
| |
|---|
| Median (9 companies) | 26.9% | 28.7% | 30.3% | 30.8% | 18.8% |
|---|
| Marico ($MARICO) | 25.9% | 23.2% | 22.6% | 26.9% | 36.1% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Bliss Gvs Pharma ($BLISSGVS) | | 0.0x | 1.1x | 1.9x | |
| Godrej Consumer Products ($GODREJCP) | 2.7x | 1.6x | 1.7x | 1.5x | 1.7x |
| Cupid ($CUPID) | 2.2x | 1.7x | 0.5x | 1.4x | |
| Dabur India ($DABUR) | 1.0x | 0.8x | 1.2x | 0.3x | |
| Hindustan Unilever ($HINDUNILVR) | -0.6x | -0.3x | -0.1x | -0.2x | |
| |
|---|
| Median (8 companies) | 0.6x | 0.5x | 0.2x | 0.1x | 1.7x |
|---|
| Marico ($MARICO) | 1.4x | 1.5x | 1.3x | 0.9x | 0.3x |
