ICICI Securities – Retail Equity Research Result Update Marico
Marico (MARLIM)
CMP: | 546 Target: | 630 (15%) Target Period: 12 months BUY
August 1, 2021 Saffola growth momentum continues…
About the stock: Marico is one of the major FMCG companies present in hair oil,
edible oil, foods & personal care segment. Major brands include Parachute, Saffola, Nihar, Hair & Care, Set Wet, Livon and Beardo. Particulars
The company has an overall distribution network of more than 5 million Particulars (| crore) Amount outlets and direct reach of ~1 million outlets. Through its stockist network, Market Capitalization 70,503.0 it reaches 58000 villages Total Debt (FY21) 340.0
Cash and Investments (FY21) 1,572.0 Update Result With the high gross margins of ~47%, Marico is able to spend 10% of its EV 69,271.0 sales for advertisements to support new categories & products 52 week H/L (|) 552 / 333 Equity capital 129.0 Face value (|) 1.0
Q1FY22 Results: Marico reported robust revenue growth in Q1FY22 results. Shareholding pattern Sales were up 31.2% YoY with strong volume recovery and price hikes (in %) Sep-20 Dec-20 Mar-21 Jun-21 EBITDA was at | 481 crore, up 3.1% YoY, with margins at 19% Promoter 59.6 59.6 59.6 59.6 FII 23.7 24.2 24.0 25.0 Consequent PAT was at | 365 crore (down 5.3% YoY) DII 10.4 10.2 10.2 9.7 Others 6.3 6.0 6.2 5.7
What should investors do? Marico’s share price has given 84% return in the last five years (from | 297 in July 2016 to | 547 in July 2021). Price Chart We roll over FY24 numbers with expectations of a full recovery in all 600 20000 segments and stabilisation of commodity prices 15000 400 We continue to maintain our BUY rating on the stock 10000 200 5000 Target Price and Valuation: We value the stock at | 630 on ascribing 50x FY24
earnings multiple 0 0
Jul-19 Jul-17 Jul-18 Jul-20 Jul-21
Jan-18 Jan-21 Jan-20 Key triggers for future price performance: Jan-19 Marico NIFTY
Retail Equity Research Equity Retail
Robust growth in foods & edible oil portfolio led by tailwinds of healthy Recent event & key risks
– eating habits & home cooking. Foods portfolio to clock | 500 crore in FY22 Acquired brand ‘Just Herbs’ in Market share gains in parachute given smaller, regional brands find it July 2021. This is one of the difficult to pass on sharp commodity price increase digital first brand Likely margin improvement given commodity prices are expected to cool- Key Risk: (i) Incessant off in H2FY22 commodity inflation to Investment in digital only brands. Aims to achieve | 450 crore sales by FY24 pressurise margins (ii) dismal
ICICI Securities Securities ICICI growth in highly penetrated hair Alternate Stock Idea: Besides Marico, we like HUL in our FMCG coverage. oil category With synergistic benefits of acquired nutrition business, strong Research Analyst premiumisation trend & strong distribution, HUL would continue to grow the revenues at a sustainable pace Sanjay Manyal Value the business at 55x FY24 earnings. BUY with a TP of | 2,750 [email protected]
Key Financial Summary
5 Year CAGR Key Financials FY20 FY21 (FY16 to FY21) FY22E FY23E FY24E CAGR (FY21-24E) Net Sales 7315.0 8048.0 6.0 9313.3 10000.5 10688.7 9.9% EBITDA 1469.0 1591.0 8.6 1795.2 2059.9 2245.0 12.2% EBITDA Margin % 20.1 19.8 19.3 20.6 21.0 Net Profit 1043.0 1199.0 10.6 1336.7 1486.2 1617.5 10.5% Adjusted Net Profit 1043.0 1199.0 10.6 1336.7 1486.2 1617.5 10.5% EPS (|) 8.08 9.29 10.36 11.52 12.54 P/E 67.6 58.8 52.7 47.4 43.6 RoNW % 34.5 36.3 38.4 40.4 41.7 RoCE (%) 41.0 39.6 42.8 46.6 48.3
Source: Company, ICICI Direct Research Result Update | Marico ICICI Direct Research
Key takeaways of recent quarter Q1FY22 Results: Strong volume recovery; margin pressure temporary Revenue witnessed growth of 31.2% to | 2525 crore on the back of domestic sales growth of 34.8% & International sales growth of 17.8%. Domestic volume growth was 21% led by continued strong growth in Saffola despite high base & strong recovery in parachute & VAHO portfolio from low base
Parachute segment witnessed sales growth of 20% led by 12% volume growth. The brand gained 80 bps market share in rigid pack. VAHO segment saw 35% sales growth backed by 34% volume growth. Saffola segment witnessed a growth of 60% on the back of volume growth of 24%
Saffola edible oil growth was led by penetration (60%) and increase in consumption (40%). Foods portfolio saw 100% growth in Q1FY22 led by newly launched brands in honey, soya chunks and noodles category. Oats product grew 59%. The opportunity size in the existing category is ~| 5000 crore
The company aims to grow its foods business to | 500 crore in current year. Newly launched Saffola Honey gained 25% market share on e-commerce channel & double digit market share in modern trade. Saffola Soya Chunks garnered the market share of 14% in modern trade. The company is expanding the products reach to East & North India
With the sharp increase in copra, vegetable & crude derivative prices, the company took aggressive price hikes in the last six months. Saffola edible oil saw low double digit growth whereas foods business clocked 100% growth
Marico aims to generate | 450-500 crore of sales by FY24 through digital first brand only. The company has invested in digital brands like Beardo, Pure Sense, Just Herbs & Coco Soul in Male grooming & Skin care products
In the international business, Bangladesh business grew 9% in constant currency (CC). Vietnam business grew 16% in CC whereas South Africa & MENA regions saw growth of 52% & 74%, respectively, on a low base. Bangladesh & Vietnam started witnessing surge in Covid-19 cases. These countries were not impacted earlier
Copra & rice bran oil prices remained elevated for most of the quarter. This resulted in gross margin contraction of 783 bps. However, copra prices have stared cooling off with the expected arrival of new crop. Moreover, the company took price hikes and withdrew promotions to partially pass on the commodity price increase
With saving of 138 bps in overhead spends, 107 bps in employee spends & 19 bps in marketing spend, the company was partially offset the contraction of gross margins. Nonetheless operating profit grew at a slower pace of 3.1% to | 481 crore with operating margins contraction of 518 bps to 19%. Net profit dipped 5.3% to | 365 crore
Marico expects gross margins to improve in the next few quarters given copra prices are down 13% sequentially and expected to remain at low levels in the near term. However, rice bran oil prices have remained elevated and are expected to remain volatile in near term. Crude derivatives like liquid paraffin & HDPE are likely to remain firm
E-commerce channels witnessed 61% growth and are now contributing 9% to domestic sales. General trade channel grew 17% in both urban & rural regions
The company aims to grow volume in the range of 8-10% with sustainable gains in market shares. In international business, Marico aims to grow in double digits
ICICI Securities | Retail Research 2 Result Update | Marico ICICI Direct Research
Exhibit 1: Peer Comparison CMP TP M Cap Sales growth (%) EBITDA Margins (%) P/E(x) RoE (%) RoCE (%) Sector / Company (|) (|) Rating (| Cr) FY21 FY22E FY23E FY21 FY22E FY23E FY21 FY22E FY23E FY21 FY22E FY23E FY21 FY22E FY23E Hindustan Unilever (HINLEV) 2334 2750 Buy 558687 18.4 16.0 7.8 25.0 25.6 26.2 70.2 58.7 52.8 17.1 20.0 21.6 18.9 25.6 27.7 Dabur India (DABIND) 601 620 Buy 94540 9.9 13.3 10.1 20.9 21.6 21.8 55.8 48.9 43.8 22.1 22.9 23.2 24.5 26.5 27.1 Tata Consumer (TATGLO) 756 725 Buy 60728 20.4 13.3 8.6 13.3 13.7 14.2 65.3 53.1 45.5 6.4 7.6 8.5 8.0 9.1 10.0 Marico (MARLIM) 546 630 Buy 70503 10.0 15.7 7.4 19.8 19.3 20.6 58.8 52.7 47.4 36.3 38.4 40.4 39.6 42.8 46.6
Source: Company, ICICI Direct Research Marico witnessed a strong sales recovery during the quarter with 21% domestic volume growth with slight impact of Covid-19 second wave. Moreover, price hikes to pass on sharp rise in commodity costs also supported sales growth. Though gross margins and subsequently operating margins were adversely impacted by high commodity costs, we believe copra prices have peaked in Q1FY22. We believe the company would be able to regain its operating margins by H2FY22. Moreover, the company has been able to garner market share from the unorganised players in parachute & VAHO category given high commodity prices have made it difficult for smaller & regional brands to pass on such commodity inflation. The newly launched products are gaining strong traction under Saffola brand. The company is leveraging its existing brands & tailwind in healthy foods habits to grow the category. We believe newer sub categories within foods, digital only brands would be driving the growth for the company in future. We remain positive on the company. We value the stock 50x FY24 earnings with the target price of | 630/share & BUY recommendation.
ICICI Securities | Retail Research 3 Result Update | Marico ICICI Direct Research
Exhibit 2: Variance Analysis Q1FY22 Q1FY22E Q1FY21 YoY (%) Q4FY21 QoQ (%) Comments Net sales witnessed growth of 31.2% on the back of low Net Sales 2,525.0 2,474.2 1,925.0 31.2 2,012.0 25.5 base quarter and strong sustainable growth in Saffola edible oil & foods segment Gross margins contracted Raw Material Expenses 1,489.0 1,258.9 984.5 51.2 1,124.0 32.5 Gross margins contracted 783 bps on account of steep Employee Expenses 150.0 166.1 135.0 11.1 150.0 0.0 rise in copra, vegetable oil & crude based derivatives SG&A Expenses 175.0 212.9 137.0 27.7 173.0 1.2 The company was able to save 138 bps in overhead cost Other operating Expenses 230.0 262.0 202.0 13.9 246.0 -6.5 with cost rationalisation measures EBITDA 481.0 450.3 466.5 3.1 319.0 50.8 Operating margins contracted 518 bps impacted by gross EBITDA Margin (%) 19.0 18.2 24.2 -518 bps 15.9 319 bps margins contraction Depreciation 33.0 35.9 34.0 -2.9 36.0 -8.3 Interest 8.0 8.7 9.0 -11.1 10.0 -20.0 Other Income 27.0 24.7 19.0 42.1 29.0 -6.9 Exceptional items 0.0 0.0 64.0 NA -19.0 NA Minority Interest 0.0 0.0 0.0 NA 0.0 NA
PBT 467.0 430.4 506.5 -7.8 283.0 65.0 Tax Outgo 102.0 94.7 117.0 -12.8 56.0 82.1 PAT 365.0 335.7 385.5 -5.3 227.0 60.8 Net profit declined by 5.3% Key Metrics (%) Domestic Volume Growth 21.0 -14.0 25.0 Parachute Volume Growth 12.0 -11.0 29.0 Parachute brands saw strong recovery in Q1 Saffola brand witnessed robust growth despite high base Saffola Volume Growth 16.0 17.0 24.0 quarter VAHO segment sales recovered closer to the pre-covid VAHO Volume Growth -30.0 22.0 34.0 levels
Source: Company, ICICI Direct Research
Exhibit 3: Change in estimates FY22E FY23E FY24 (| Crore) Old New % change Old New % change New Comments With increase in copra, vegetable & crude prices, the Gross Sales 8,998.7 9,313.3 3.5 9,990.7 10,000.5 0.1 10688.7 company has taken price hikes to pass on the raw material impact. We incorporate price hikes EBITDA 1,715.3 1,795.2 4.7 1,921.1 2,059.9 7.2 2245.0 We believe the company would be able to maintain operating margins with price hikes & cost rationalisation EBITDA Margin (%) 19.1 19.3 21 bps 19.2 20.6 137 bps 21.0 measures. Prices of commodities are expected to soften by H2FY22 PAT 1,241.6 1,336.7 7.7 1,380.7 1,486.2 7.6 1,617.5 EPS (|) 9.6 10.4 7.7 10.7 11.5 7.6 12.5
Source: ICICI Direct Research
Exhibit 4: Assumptions Current Earlier FY19 FY20 FY21E FY22E FY23E FY23E FY22E FY23E Comments We have incorporated price hikes in our sales Std. Sales (| crore) 5,756.0 5,853.0 6,337.0 7,397.0 7,892.6 8,391.0 7,082.4 7,882.7 estimates. Foods & digital products are likely to aid revenues Subs. Sales (| crore) 1,578.0 1,462.0 1,711.0 1,916.3 2,108.0 2,297.7 1,916.3 2,108.0
Source: ICICI Direct Research
ICICI Securities | Retail Research 4 Result Update | Marico ICICI Direct Research
Key Metrics
Exhibit 5: Revenue to grow at 9.9% CAGR over FY21-24E Exhibit 6: Domestic volume trend YoY (%)
12000 10689 18.0 30 25 10001 21 9313 16.0 25 10000 15.8 14.0 20 15 8048 11 8000 7334 7315 12.0 15 8.0 8.0 9.0 8 6333 15.7 6 5 6 6.9 10.0 10 6000 8.0 5 1 -1 10.0 -3 6.0 0 -5.0 7.4 -9.0 4000 4.0 -5 -10 -14 2000 -0.3 2.0 0.0 -15 0 -2.0 -20
FY186.7 FY19 FY20 FY21 FY22E FY23E FY24E
Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Sales (| crore) Sales growth (%) Q3FY19
Source: ICICI Direct Research, Company Source: ICICI Direct Research, Company
Exhibit 7: EBITDA margin and raw material trend Exhibit 8: PAT (| crore) – LHS and PAT growth YoY (%) - RHS 37.2 60 25 20.1 1800 40 19.8 19.3 1600 35 18.0 17.5 20 30 55 21.0 1400 11.5 11.2 51.920.6 15.0 25 54.8 51.6 15 1200 8.8 20 50 52.9 53.1 53.3 1000 15 51.2 10 800 2.0 10 600 5 45 0 5 400 -8.1 -5 200 827 1135 1043 1199 1337 1486 1618 -10 40 0 0 -15 FY18 FY19 FY20 FY21 FY22E FY23E FY24E FY18 FY19 FY20 FY21 FY22E FY23E FY24E
Raw Material Cost to Sales % EBITDA Margin PAT (| crore) PAT Growth (%)
Source: Company, ICICI Direct Research Source: Company, ICICI Direct Research
Exhibit 9: Valuation Sales Growth EPS Growth PE EV/EBITDA RoNW RoCE (| cr) (%) (|) (%) (x) (x) (%) (%) FY21 8048.0 10.0 9.3 15.0 58.8 43.6 36.3 39.6 FY22E 9313.3 15.7 10.4 11.5 52.7 39.0 38.4 42.8 FY23E 10000.5 7.4 11.5 11.2 47.4 34.0 40.4 46.6 FY24E 10688.7 6.9 12.5 8.8 43.6 31.2 41.7 48.3
Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 5 Result Update | Marico ICICI Direct Research
Financial Summary
Exhibit 10: Profit and loss statement | crore Exhibit 11: Cash flow statement | crore (Year-end March) FY21 FY22E FY23E FY24E (Year-end March) FY21 FY22E FY23E FY24E Total Operating Income 8048.0 9313.3 10000.5 10688.7 Profit before Tax 1,523.0 1,715.7 1,957.5 2,130.3 Growth (%) 10.0 15.7 7.4 6.9 Add: Depreciation 139.0 143.5 157.9 172.3 Raw Material Expenses 4,270.0 4,966.3 5,190.5 5,515.0 (Inc)/dec in Current Assets 480.0 -866.0 -186.5 -237.8 Employee Expenses 570.0 661.2 700.0 737.5 Inc/(dec) in CL and Provisions 250.0 -210.9 13.7 90.3 Marketing Expenses 698.0 847.5 940.1 1,015.4 Others -324.0 -377.0 -469.3 -510.8 Excise Duty 0.0 0.0 0.0 0.0 CF from operating activities 2,068.0 405.3 1,473.2 1,644.4 Other expenses 919.0 1,043.1 1,110.1 1,175.8 (Inc)/dec in Investments -664.0 -52.0 -52.0 -52.0 Total Operating Expenditure 6,457.0 7,518.1 7,940.7 8,443.7 (Inc)/dec in Fixed Assets -274.0 249.5 27.9 42.3 EBITDA 1591.0 1795.2 2059.9 2245.0 Others 0.0 -113.5 -127.9 -142.3 Growth (%) 8.3 12.8 14.7 9.0 CF from investing activities -938.0 84.0 -152.0 -152.0 Depreciation 139.0 143.5 157.9 172.3 Issue/(Buy bick) of Equity 6.0 0.0 0.0 0.0 Interest 34.0 34.8 47.1 49.1 Inc/(dec) in loan funds -170.0 -2.0 -2.0 -2.0 Other Income 94.0 98.7 102.6 106.8 Dividend paid & dividend tax -968.0 -1,161.0 -1,290.0 -1,419.0 Share of profit/(loss) of associates & JV 0.0 0.0 0.0 0.0 Total Tax 324.0 377.0 469.3 510.8 CF from financing activities -1,119.0 -1,163.0 -1,292.0 -1,421.0 PAT 1188.0 1338.7 1488.2 1619.5 Net Cash flow 16.0 -673.7 29.2 71.4 Growth (%) 10.8 12.7 11.2 8.8 Opening Cash 93.0 109.0 -564.7 -535.5 Adjusted PAT 1199.0 1336.7 1486.2 1617.5 Cash in Bank 835.0 835.0 835.0 835.0 Adjusted EPS (|) 9.3 10.4 11.5 12.5 Closing Cash 944.0 270.3 299.5 370.9 Source: Company, ICICI Direct Research Source: Company, ICICI Direct Research
Exhibit 12: Balance Sheet | crore Exhibit 13: Key ratios (Year-end March) FY21 FY22E FY23E FY24E (Year-end March) FY21 FY22E FY23E FY24E Liabilities Per share data (|) Share Capital 129.0 129.0 129.0 129.0 EPS (Adjusted) 9.3 10.4 11.5 12.5 Reserve and Surplus 3,175.5 3,351.2 3,547.3 3,745.9 Cash EPS 10.4 11.5 12.7 13.9 Total Shareholders funds 3,304.5 3,480.2 3,676.3 3,874.9 BV 25.6 27.0 28.5 30.0 Long Term Borrowings 0.0 0.0 0.0 0.0 DPS 7.5 9.0 10.0 11.0 Provisions & other LTL 130.0 130.0 130.0 130.0 Cash Per Share 7.3 2.1 2.3 2.9 Minority Interest / Others 18.0 20.0 22.0 24.0 Operating Ratios (%) Deferred Tax Liability 109 107 105 103 EBITDA Margin 19.8 19.3 20.6 21.0 Total Liabilities 3561.5 3737.2 3933.3 4131.9 PBT / Total Operating income 18.9 18.4 19.6 19.9 Assets PAT Margin 14.9 14.4 14.9 15.1 Gross Block 1,136.0 1,256.0 1,376.0 1,496.0 Inventory dbcs 51 65 64 64 Less: Acc Depreciation 603.0 746.5 904.4 1,076.8 Debtor dbcs 18 26 25 25 Net Block 769.0 509.5 471.6 419.2 Creditor dbcs 51 35 32 32 Capital WIP 24.0 34.0 44.0 54.0 Return Ratios (%) Goodwill on Consolidation 613.0 583.0 553.0 523.0 RoE 36.3 38.4 40.4 41.7 Non Current Investments 271.0 296.0 321.0 346.0 RoCE 39.6 42.8 46.6 48.3 Other Non CA 497.0 524.0 551.0 578.0 RoIC 68.0 51.6 56.9 60.1 Current Investments 628.0 688.0 748.0 808.0 Inventory 1,126.0 1,658.5 1,753.5 1,874.2 Valuation Ratios (x) Debtors 388.0 663.4 685.0 732.1 P/E 58.8 52.7 47.4 43.6 Cash & Bank 944.0 270.3 299.5 370.9 EV / EBITDA 43.6 39.0 34.0 31.2 Other CA 250.0 248.0 258.0 268.0 EV / Net Sales 8.6 7.5 7.0 6.5 Total Current Assets 3,336.0 3,528.2 3,744.0 4,053.2 Market Cap / Sales 8.8 7.6 7.0 6.6 Creditors 1,134.0 893.1 876.8 937.1 Price to Book Value 21.3 20.3 19.2 18.2 Short Term Borrowings 340.0 355.0 370.0 385.0 Other Current Liabilities 539.0 554.0 569.0 584.0 Solvency Ratios Total Current Liabilities 2,013.0 1,802.1 1,815.8 1,906.1 Debt/EBITDA 0.2 0.2 0.2 0.2 Net Current Assets 1,323.0 1,726.2 1,928.3 2,147.1 Debt / Equity 0.1 0.1 0.1 0.1 Miscl. Exps. not w/o 0.0 0.0 0.0 0.0 Current Ratio 1.4 2.3 2.4 2.4 Application of Funds 3497.0 3672.7 3868.8 4067.4 Quick Ratio 0.8 1.1 1.2 1.2
Source: Company, ICICI Direct Research Source: Company, ICICI Direct Research
ICICI Securities | Retail Research 6 Result Update | Marico ICICI Direct Research
Exhibit 14: ICICI Direct coverage universe (FMCG) CMP TP M Cap EPS (|) P/E (x) Price/Sales (x) RoCE (%) RoE (%) (|) (|) Rating (| Cr) FY21 FY22E FY23E FY21 FY22E FY23E FY21 FY22E FY23E FY21 FY22E FY23E FY21 FY22E FY23E Colgate (COLPAL) 1,704 2,000 Buy 46,485 38.1 39.2 42.6 44.8 43.5 40.0 9.7 9.0 8.3 106.4 110.9 111.9 88.8 85.1 85.8 Dabur India (DABIND) 601 620 Buy 94,540 9.6 10.9 12.2 62.6 54.9 49.2 9.9 8.7 7.9 24.5 26.5 27.1 22.1 22.9 23.2 Hindustan Unilever (HINLEV) 2,334 2,750 Buy 558,687 33.9 40.5 45.0 68.9 57.6 51.8 12.3 10.6 9.9 18.9 25.6 27.7 17.1 20.0 21.6 ITC Limited (ITC) 205 240 Hold 261,086 10.7 12.0 13.5 19.1 17.1 15.2 5.4 5.0 4.6 28.2 31.3 33.6 22.1 24.2 25.9 Jyothy Lab (JYOLAB) 170 180 Hold 6,389 5.2 5.7 6.5 32.8 29.8 26.2 3.4 3.1 2.8 26.0 27.1 31.1 20.4 22.7 26.2 Marico (MARLIM) 546 630 Buy 70,503 9.3 10.4 11.5 58.8 52.7 47.4 8.8 7.6 7.0 39.6 42.8 46.6 36.3 38.4 40.4 Nestle (NESIND) 17,703 20,450 Hold 173,556 216.0 249.9 279.6 82.0 70.8 63.3 13.1 11.8 10.7 50.9 54.9 56.4 86.5 87.8 86.3 Tata Consumer Products (TATGLO)756 725 Buy 60,728 10.1 12.4 14.5 74.9 60.9 52.2 5.2 4.6 4.3 8.0 9.1 10.0 6.4 7.6 8.5 VST Industries (VSTIND) 3,432 3,850 Hold 5,384 201.3 214.6 231.1 17.1 16.0 14.8 4.9 4.4 4.1 43.4 45.0 48.2 33.0 33.4 36.0 Varun Beverage (VARBEV) 762 800 Buy 33,343 8.4 14.1 20.7 91.1 53.8 36.8 5.2 4.2 3.6 10.9 17.4 23.4 10.3 15.4 19.1 Zydus Wellness (ZYDWEL) 2,127 2,800 Buy 13,502 18.7 60.8 72.0 114.0 35.0 29.6 7.2 6.4 5.8 6.2 7.8 9.1 5.5 8.1 9.4 Source: Bloomberg, ICICI Direct Research
ICICI Securities | Retail Research 7 Result Update | Marico ICICI Direct Research
RATING RATIONALE ICICI Direct endeavors to provide objective opinions and recommendations. ICICI Direct assigns ratings to its stocks according -to their notional target price vs. current market price and then categorizes them as Buy, Hold, Reduce and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts' valuation for a stock
Buy: >15% Hold: -5% to 15%; Reduce: -15% to -5%; Sell: <-15%
Pankaj Pandey Head – Research [email protected]
ICICI Direct Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No 7, MIDC, Andheri (East) Mumbai – 400 093 [email protected]
ICICI Securities | Retail Research 8 Result Update | Marico ICICI Direct Research
ANALYST CERTIFICATION
I/We, Sanjay Manyal (MBA Finance) Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. It is also confirmed that above mentioned Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months and do not serve as an officer, director or employee of the companies mentioned in the report.
Terms & conditions and other disclosures:
ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock brokering and distribution of financial products. ICICI Securities is Sebi registered stock broker, merchant banker, investment adviser, portfolio manager and Research Analyst. ICICI Securities is registered with Insurance Regulatory Development Authority of India Limited (IRDAI) as a composite corporate agent and with PFRDA as a Point of Presence. ICICI Securities Limited Research Analyst SEBI Registration Number – INH000000990. ICICI Securities Limited SEBI Registration is INZ000183631 for stock broker. ICICI Securities is a subsidiary of ICICI Bank which is India’s largest private sector bank and has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund management, etc. (“associates”), the details in respect of which are available on www.icicibank.com.
ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in India. We and our associates might have investment banking and other business relationship with a significant percentage of companies covered by our Investment Research Department. ICICI Securities and its analysts, persons reporting to analysts and their relatives are generally prohibited from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover.
Recommendation in reports based on technical and derivative analysis centre on studying charts of a stock's price movement, outstanding positions, trading volume etc as opposed to focusing on a company's fundamentals and, as such, may not match with the recommendation in fundamental reports. Investors may visit icicidirect.com to view the Fundamental and Technical Research Reports.
Our proprietary trading and investment businesses may make investment decisions that are inconsistent with the recommendations expressed herein.
ICICI Securities Limited has two independent equity research groups: Institutional Research and Retail Research. This report has been prepared by the Retail Research. The views and opinions expressed in this document may or may not match or may be contrary with the views, estimates, rating, and target price of the Institutional Research.
The information and opinions in this report have been prepared by ICICI Securities and are subject to change without any notice. The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI Securities. While we would endeavor to update the information herein on a reasonable basis, ICICI Securities is under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent ICICI Securities from doing so. Non-rated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable regulations and/or ICICI Securities policies, in circumstances where ICICI Securities might be acting in an advisory capacity to this company, or in certain other circumstances.
This report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. ICICI Securities will not treat recipients as customers by virtue of their receiving this report. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. The recipient should independently evaluate the investment risks. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. ICICI Securities accepts no liabilities whatsoever for any loss or damage of any kind arising out of the use of this report. Past performance is not necessarily a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to change without notice.
ICICI Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other assignment in the past twelve months.
ICICI Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for services in respect of managing or co-managing public offerings, corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or specific transaction.
ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICI Securities or its associates or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither ICICI Securities nor Research Analysts and their relatives have any material conflict of interest at the time of publication of this report.
Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.
ICICI Securities or its subsidiaries collectively or Research Analysts or their relatives do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of the research report.
Since associates of ICICI Securities and ICICI Securities as a entity are engaged in various financial service businesses, they might have financial interests or beneficial ownership in various companies including the subject company/companies mentioned in this report.
ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.
Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned in the report.
We submit that no material disciplinary action has been taken on ICICI Securities by any Regulatory Authority impacting Equity Research Analysis activities.
This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject ICICI Securities and affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.
ICICI Securities | Retail Research 9