Stock Fundamentals

A Covid-19 boost for Marico

Parvatha Vardhini C | Updated on May 10, 2020 Published on May 10, 2020

After touching its one-year low of ₹233.8, Marico has recovered 30 per cent.

Its ‘defensive’ tag as a supplier of essential goods during the lockdown, as well as the results of the March 2020 quarter, contributed to the rise.

Domestic volumes in the fourth quarter fell just 3 per cent, while HUL recorded a 7 per cent dip. Higher offtakes in Saffola edible oils and the foods portfolio led by Saffola Oats during the lockdown, helped. Both categories saw a 20-25 per cent volume growth during the quarter. Hair oils, hair nourishment and male grooming witnessed an 8-19 per cent drop in volumes.

Consolidated revenues at ₹1,496 crore were 7 per cent lower than a year ago, while consolidated profit after tax (excluding one-offs) came 3 per cent lower, at ₹204 crore. Operating margins expanded by 58 basis points to 18.9 per cent, due to lower ad spends as well as other cost controls. The stock now trades at 38 times its trailing 12-month earnings, and is much cheaper than HUL, Dabur and Britannia.

Published on May 10, 2020

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Sincerely,

Support Quality Journalism
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.