Marico (BSE: 531642, NSE: “MARICO”) is one of India’s leading consumer goods companies
operating in the global beauty and wellness space. Its products sold in India and chosen markets in Asia and Africa. Marico touches the lives of 1 out of every 3 Indians, through its portfolio of brands such as Parachute, Saffola, Hair & Care, Parachute Advanced, Nihar Naturals, Mediker, Pure Sense, Coco Soul, Revive, Set
Wet, Livon, Just Herbs and Beardo. The international consumer products portfolio contributes to about 23% of the Group’s revenue, with brands like Parachute, Parachute Advanced, HairCode, Fiancée, Caivil, Hercules, Black Chic, Code 10, Ingwe, X-Men, Mediker SafeLife, Thuan Phat and Isoplus. Sales grew from 600 cr and profits of 50 cr during the year 2000 while today able to make sales & Profits of 8000 cr and 1000 cr. High growth of 15% CAGR during the last 2 decades. Hence Investment of 1 Lakh is already 1.5 cr along with consistent dividends of around 50%.
This year Sale has grown by 18% which is strong sales but along with demand huge rise in inflation has increased the cost by 32% which affected the Profits which were up by just 5%. We may see an Inflation cool-off around Q3.
New buying again can be done during any fall near 431 to 359 & can book some profits this year near the target of 575. Good even for long-term wealth. Can expect a multi-year rally along with consistent and high dividends.
LIC just added some 1.9 lakh shares in last January around 400 increasing their stake to 5%.