Marico Limited's intrinsic value using Intellectual Capital analysis

Marico Limited

BSE : 531642

|

NSE : MARICO

Industry : Personal Care

|

ISIN : INE196A01026

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FreeFloat : 45.00%

|

FnO : Yes

|

LotSize : 1300

BSE 100 | BSE 100 Largecap TMC | BSE 200 | BSE 250 LargeMidcap | BSE Largecap | BSE LargeMidcap | BSE SENSEX Next 50 | Nifty 100 | Nifty 200 | Nifty LargeMidcap 250 | Nifty Next 50 | Nifty100 Equal Weight | Nifty Alpha Low Volatility 30 | Nifty Alpha Quality Low Volatility 30 | Nifty Alpha Quality Value Low Voltlty 30 | Nifty Quality Low Volatility 30 | Nifty FMCG | BSE Dividend Stability | BSE Low Volatility | BSE Quality | Nifty Low Volatility 50 | Nifty100 Alpha 30 | Nifty100 Quality 30 | Nifty200 Quality 30 | BSE 100 ESG | BSE CARBONEX | Nifty100 Enhanced ESG | Nifty100 ESG | Nifty India Consumption

Intellectual Capital (IC)	10,217.27
Net Worth (NW)	3,036.00
Intrinsic Worth (IW)	13,253.27
Market Cap (MC)	35,479.41
Economic Value Added	101.20

Discount Rate	%
Liquidity Premium	%

Knowledge Basis (IC/IW)	77.09%
IC Gross Margin (EBITDA/IC)	15.17%
IC Net Margin (NPT/IC)	11.52%
Knowledge Turnover (Sales/IC)	0.72
Market to Intrinsic Value (MC/IW)	2.68

As Of	Intrinsic Value	Market Price
31 Mar 2020	Rs. 102.67	Rs. 274.85
29 May 2020	-	Rs. 343.80

Fundamental - medium term		Technical - near term		Combined outlook
EVA > 0 : Yes	Buy	10 DMA : Rs. 320.48	Buy	Strong Buy
KB > 50% : Yes		50 DMA : Rs. 289.94
0 < M2IV < 1 : No		Vol-Price trend : Rising

Question 3 - Is this stock undervalued?

Question 2 - Does this business have significant knowledge assets?

Question 1 - Is this business generating enough profits to cover its cost of capital?

* EVA is a registered trademark of Stern Stewart and Co.

Quarterly Results (Rs. Cr)

Quarter

Type*

Sales

Income

EBITDA

EBIT

PBT

PAT

NPT

Jun-17
C
1692.38
1715.28
347.15
326.01
322.54
235.94
237.07

Sep-17
C
1536.29
1557.73
279.96
256.44
252.92
185.04
186.54

Dec-17
C
1624.33
1641.74
319.34
298.02
294.14
223.28
215.74

Mar-18
C
1480.09
1502.97
275.79
252.70
247.41
183.20
194.23

Jun-18
C
2026.79
2050.80
379.17
356.73
351.44
260.13
271.45

Sep-18
C
1836.82
1866.03
323.94
301.55
295.88
218.26
236.65

Dec-18
C
1860.97
1882.54
370.51
347.93
343.14
251.70
232.60

Mar-19
C
1609.00
1637.00
310.00
281.00
273.00
405.00
376.00

Jun-19
C
2166.00
2194.00
470.00
435.00
423.00
315.00
316.00

Sep-19
C
1829.00
1864.00
389.00
354.00
341.00
253.00
248.00

Dec-19
C
1824.00
1853.00
402.00
370.00
358.00
276.00
318.00

Mar-20
C
1496.00
1528.00
303.00
265.00
252.00
199.00
204.00

* C - Consolidated, S - Standalone