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Marico Ltd logo

Marico Ltd

NSE: MARICO BSE: 531642

748.30

(2.03)%

Thu, 05 Feb 2026, 07:34 pm

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are covered by earnings (1.2x coverage).
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
  • Marico's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Marico's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Marico's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Marico's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • Marico is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
  • Performance (ROE) is expected to be above the current IN Personal Products industry average.
  • An improvement in Marico's performance (ROE) is expected over the next 3 years.
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Cons

  • Cash flow for Marico is expected to increase but not above the 50% threshold in 2 years time.
  • Marico's earnings are expected to grow by 9.4% yearly, however this is not considered high growth (20% yearly).
  • Marico's earnings growth is positive but not above the India market average.
  • Marico's earnings are expected to increase but not above the low risk growth rate next year.
  • Marico's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Marico's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Marico's revenue is expected to grow by 6.6% yearly, however this is not considered high growth (20% yearly).
  • Marico's revenue growth is positive but not above the India market average.

health

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Pros

  • Marico is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Marico is profitable, therefore cash runway is not a concern.
  • Marico is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (363.6%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 9.5x debt.
  • Marico's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (23.5% vs 11% today).
  • Interest payments on debt are well covered by earnings (EBIT is 26.6x coverage).
  • Marico's level of debt (11%) compared to net worth is satisfactory (less than 40%).
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Cons

  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Marico board of directors is about average.
  • Saugata's remuneration is about average for companies of similar size in India.
  • Saugata's compensation has been consistent with company performance over the past year, both up more than 20%.
  • More shares have been bought than sold by Marico individual insiders in the past 3 months.
  • The tenure for the Marico management team is about average.
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Cons

    misc

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    Pros

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      Cons

      • Marico has significant price volatility in the past 3 months.

      past

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      Pros

      • Marico's year on year earnings growth rate has been positive over the past 5 years.
      • Marico used its assets more efficiently than the IN Personal Products industry average last year based on Return on Assets.
      • Marico has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
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      Cons

      • Marico's 1-year earnings growth is negative, it can't be compared to the 5-year average.
      • Marico's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
      • Marico's 1-year earnings growth is negative, it can't be compared to the IN Personal Products industry average.

      value

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      Pros

      • 531642 outperformed the Market in India which returned -14.5% over the past year.
      • BSE:531642 is up 4.4% along with the Personal Products industry (3.7%) over the past month.
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      Cons

      • Marico's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Marico's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • Marico is overvalued based on assets compared to the IN Personal Products industry average.
      • Marico is poor value based on expected growth next year.
      • Marico is overvalued based on earnings compared to the IN Personal Products industry average.
      • Marico is overvalued based on earnings compared to the India market.
      • 531642 underperformed the Personal Products industry which returned -5.3% over the past year.
      • BSE:531642 is up 4.4% underperforming the market in India which returned 8% over the past month.

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