At a glance:
Marico may not make headlines like HUL or ITC, but it quietly dominates your kitchen and bathroom. With a 62% market share in coconut oil and ROCE flirting with 45%, Marico’s FY25 story is all about efficient compounding — not flashy growth. The only question: Can it maintain this Zen-like momentum as valuations heat up?
1. 🧾 About the Company
Marico Ltd (NSE: MARICO) is a household name across India and emerging markets, best known for:
- 🥥 Parachute (Coconut Oil, Hair Care)
- 🥗 Saffola (Edible Oils, Oats, Functional Foods)
- 💅 Livon, Set Wet, Beardo (Grooming & Styling)
- 🧼 Mediker, Kaya Youth (Hygiene & Skincare)
📍 Presence in 25+ countries
🏆 Leader in 6 categories in India — including Leave-On Serums (53% share) and Hair Gels (52%).
2. 💼 FY25 Financial Performance
| ₹ in Crores | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | 8,048 | 9,512 | 9,764 | 9,653 | 10,831 |
| EBITDA | 1,589 | 1,681 | 1,810 | 2,026 | 2,139 |
| EBITDA Margin % | 20% | 18% | 19% | 21% | 20% |
| Net Profit | 1,199 | 1,255 | 1,322 | 1,502 | 1,658 |
| ROCE % | 43% | 43% | 42% | 43% | 45.6% |
| ROE % | 39% | 38% | 39% | 42% | 41.7% |
| EPS (₹) | 9.08 | 9.48 | 10.07 | 11.44 | 12.57 |
📦 FY25 Highlights:
- Sales grew 12% YoY
- Net profit crossed ₹1,650 Cr
- Highest-ever EPS: ₹12.57
- Operating margin stable at 20%
3. 🧴 Product Portfolio: The Shelf Domination Strategy
| Segment | Key Brands | Market Share |
|---|---|---|
| Coconut Oil | Parachute, Nihar | 62% |
| Edible Oils & Foods | Saffola, Coco Soul | 41% (Oats) |
| Hair Care | Parachute Advansed | 27% (VAHO) |
| Grooming | Set Wet, Beardo | 52% (Styling) |
| Skincare/Hygiene | Kaya Youth, Mediker | Niche |
| New Age Foods | True Elements, FITTIFY | Emerging |
🧠 Growth Drivers:
- Saffola’s new dual-seed oil line launched nationwide in FY25
- True Elements and Beardo gaining online traction
- Satiya Nutraceuticals acquired (60%) — ₹380 Cr wellness bet
4. 💰 Cash Flow & Balance Sheet
| Metric | FY24 | FY25 |
|---|---|---|
| Cash from Operations (₹ Cr) | 1,436 | 1,363 |
| Capex | -67 | -40 |
| Net Cash Flow | +21 | +93 |
| Debt | ₹528 Cr | ₹554 Cr |
| Dividend Payout Ratio | 83% | 83% |
📉 Working capital stretched: Days jumped from 30 to 77 days in FY25.
📦 Inventory Days: Reduced from 116 to 84 — showing operational cleanup.
⚠️ Debtor Days up to 43 — watch this if consumer slowdown worsens.
5. 🧮 EduInvesting Fair Value Estimate (FV Range)
Assumptions:
- FY26 PAT estimate: ₹1,850 Cr
- PE band: 45x to 55x (stable-growth FMCG valuation)
- Equity Value: ₹83,250 Cr to ₹1,01,750 Cr
- Shares Outstanding: ~129 Cr
➡️ Fair Value Range: ₹645 – ₹790
📍 CMP: ₹692 (As of June 12, 2025)
📊 Verdict: Slightly undervalued to fairly priced at current levels, assuming continued earnings momentum.
6. 📉 Risks & Red Flags
- 🧮 P/E is at 55x — pricing in premium FMCG performance
- 🚧 Weak 5Y Sales CAGR of just 8.1%
- ⚠️ Working capital days up 80% YoY
- 🌍 Overseas business (Asia, Africa) remains underpenetrated
- 🧻 Growth mainly margin-led, not volume-led
7. 🌟 Why Marico Still Stands Out
✅ Category leadership in every vertical it plays
✅ High ROCE + high payout + clean balance sheet
✅ Moves quietly into wellness, men’s grooming, D2C brands
✅ Consistent operating discipline — not a single bad year in a decade
✅ FY25 EBITDA & PAT at all-time highs
8. 🧠 EduInvesting Take
Marico is that financially fit middle-aged guy who doesn’t chase trends — he just invests, eats clean, and runs a 10k every weekend.
It won’t explode like Honasa.
It won’t thrill you like ITC.
But Marico will compound, protect, and occasionally surprise.
If you’re building a core FMCG portfolio, this is your Parachute.
🔍 TL;DR
- 💡 FY25 was a solid year: 12% sales growth, 20% OPM, ₹1,658 Cr PAT
- 📦 Portfolio continues to dominate Indian shelves
- 📉 Stock is not cheap, but deservedly so
- 🧠 EduInvesting Verdict: Steady compounding. Long-term hold. Just don’t expect fireworks.
Tags: Marico FY25 Results, FMCG Stocks India, Parachute Oil, Saffola Oats, Dividend FMCG Stocks, True Elements, ROE Kings India, EduInvesting
Author: Prashant Marathe
Date: 12 June 2025
