ABOUT THE COMPANIES

Marico Limited is one of India's leading consumer goods companies operating in global beauty and wellness categories.It is Headquartered in Mumbai and present in over 25 countries across emerging markets of Asia and Africa. It leading brands are spread across various categories of hair care, skin care, edible oils, healthy foods, male grooming and fabric care andittouches the lives of 1 out of every 3 Indians, through its portfolio of brands. The company has a pan-India distribution network with a reach of 5.6 million outlets out of a total of 12 million outlets in India.

Hindustan Unilever Ltd was incorporated in 1933 as Lever Brothers India Ltd and currently it is India's largest Fast-Moving Consumer Goods company with its products touching the lives of 9 out of 10 households in the country. Company’s parent company Unilever has presence in 190 countries and have 90 +years of presence in India. Currently company’s product portfolio consists of 50+brands spread across various segmentshome care, Beauty and Well Being, personal care, Foods, and Refreshments. Its products are sold over 9 +million retail outlets through 3500+distributors across the country. Company’s 19brands out of 50 brands generates turnover of ₹1,000 crores per annum for the company.

Presence

Marico is present in 25 countries across emerging markets of Asia and Africa which includes India, Banglades, Malaysia, Vietnam, Egypt, South Africa and Middle Eat. It has seven factories in India, located at Puducherry, Perundurai, Jalgaon, Guwahati, Baddi, and Sanand. It holds 26% of the market share of International FMCG business.

HUL is present in 190 countries which includes North America, Latin America, Europe and Asia Pacific African regions. It has 4.4 millionretail storesserved by distributors in top 10 emerging markets. It has manufacturing facilities across the country.

Segment or Product wise Comparison

Marico caters to the need need of every individual through its well product portfolio offered by its various brands in different segments such as Parachute and Nihar Naturals in Coconut Oils segment, Saffola in Super-premium Refined edible oils, Parachute advanced, Nihar naturals and Hair & Care in Value added hair oils, Saffola oats, Coco Soul. Coconut oil and Saffola FITTIFY Gourmet Range in Healthy Foods segment, Livon Serums and Hair & Care in premium Hair Nourishment segment, Set Wet, Beardo and Parachute in Male Grooming & Styling, Kaya Youth and Parachute advanced in Skin care segment, Mediker and Veggie clean in Hygiene segment and True Elements in Breakfast segment.

Company’s Coconut Oils segment has leading market share of 62%, Parachute Rigids have 52% market share, Saffola Oats have 41% market share, Value added hair oils have 27% market share. Leave – On Serums have 53% market share and Hair Gels / Waxes / Creams have 52% of the total market share in India.

HUL is a house of 50+ brands offered under various categories and catering to the need of every household in India. Company offers brands such as Dove, Lifebuoy, LUX, Pears, Liril, Hamam and Lever Ayush under Skin Cleansing segment, Pepsodent, Closeup and Lever Ayush under Oral Care, Tresemme, Dove, Indulekha, Lever Ayush under Hair Care, Glow & Lovely, Pond's, Vaseline, Lakme, Lever Ayush under Skin Care and Lakme under Color Cosmetics segment. It also offers Vim, cif, Domex, Sunlight, nature protect under Household care segment, Comfort, Wheel, Rin, Surf excel, Love & careunder Fabric Wash
and Pureit under Purifiers segment. Under Food and Refreshment vertical company offers Knorr, Kissan, Hellmann's, Annapurna under Foods segment, Lipton, Bru, Broke Bond Red Label, Taj Mahal, Taaza, 3 Roses under Beverages segment, Horlicks under Nutrition segment and Kwality Walls under Ice Cream segment.

Financial Comparisons:

Quarterly Results of Q1FY25 :

Marico reported a Net Sales of Rs 2,643.00 crore in June 2024 up by 6.7% from Rs. 2,477.00 crore in June 2023. Its Quarterly Net Profit was at Rs. 464.00 crore in June 2024 up 8.67% from Rs. 427.00 crore in June 2023. Company’s EBITDA stands at Rs. 663.00 crore in June 2024 up 6.94% from Rs. 620.00 crore in June 2023.Marico’s EPS has increased to Rs. 3.60 in June 2024 from Rs. 3.30 in June 2023.

In domestic markets company recorded 4% volume growth in June Quarter and more than 90% of the domestic business either gained or sustained market share and penetration on MAT basis. On International front, company reported 10% growth in Bangladesh, 20% growth in MENA, 28% growth in South Africa and Flattened growth in South – East Asia and overall international markets recorded 10% Constant Currency growth.

HUL reported a Net Sales of Rs 15,707.00 crore in June 2024 up by 1.36% from Rs. 15,496.00 crore in June 2023. Its Quarterly Net Profit stood at Rs. 2,610.00 crore in June 2024 up 2.19% from Rs. 2,554.00 crore in June 2023. Company’s EBITDA stands at Rs. 4,001.00 crore in June 2024 up 3.98% from Rs. 3,848.00 crore in June 2023.HUL’s EPS has increased to Rs. 11.11 in June 2024 from Rs. 10.87 in June 2023. Company has generated 2% Underlying Sales Growth and 4% Underlying Volume Growth in Q1Fy24. Company’s Corporate Market Shares (MAT) increased by 200bps. with Premium portfolio contribution up by c.300 bps over the last 3 years and Portfolio growth with 20% in UVG & 50%+ in E-com.

CONCLUSION:

From the above discussion it can be observed that Marico has generated better returns in last 3 years compared to its peer HUL. But on the contrary, it has also reported poor quarterly results in first quarter of Fy24 with setback in Top lines affected by worsening Bangladesh stability. Going forward, company is continuously reducing its dependency in Bangladesh region and increasing its focus on other international markets. Considering previous performance and other Key Performance Indicators, MARICO can be the winner of today’s show-off and a better option to invest at the current CMP.

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Comparative Analysis by: HET ZAVERI

info@smartinvestment.in

(Disclosures: Above mentioned is not an investment advice, it’s just a comparison of two likewise companies of same sector which may help in taking advised decisions for investors. At the time of writing this article, author, his clients & dependent family members may have positions in the stocks mentioned above. The author, his firm, his clients, or any of his dependent family members may make purchases or sale of the securities mentioned in website. Author may have positions in above stocks so have vested interest obviously in their going up or down as the case may be.

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