Marico Limited, one of India’s leading consumer products companies in the global beauty and wellness space, declared an interim dividend of 450 percent on a face value of Rs 1. The ex-date and record date for the dividend is the 8th of March, 2023. It simply describes that a shareholder with 1 share, as of the record date, will be eligible for a dividend of Rs 4.5.
Marico Limited is an Indian multinational company involved in the consumer goods sector providing consumer products and services in the areas of health, beauty, and wellness. The group is present in over 25 countries across emerging markets of Asia and Africa.
Having a glance over the financials of the company, we can observe that the returns on capital employed have seen a slight improvement which is from 44.85 percent in FY20-21 to 45.03 percent in FY 21-22. The returns to the equity holders have marginally declined from 38.69 percent in FY20-21 to 38.43 percent in FY 21-22.
Talking about the revenues of the company, it has marginally declined from Rs 2,496 crores in Q2 to Rs 2,470 crores in Q3. Net profits, on the other hand, have provided an upside from Rs 307 crores in Q2 to Rs 333 crores in Q3 which is up 8.4 percent.
The valuation ratios, in addition to the positive scale of reporting by the above-mentioned parameters, have shown a good improvement. The P/E ratios have soared from 45.29 in FY20-21 to 53.04 during FY 21-22. Another important metric, being the EV/EBITDA ratio, has reported healthy numbers with 31.15 in FY20-21 and 36.39 in FY 21-22.
A blue chip stock generally refers to the shares of an established, profitable, and well-recognized corporation characterized by a large market cap, listing on a major stock exchange, and a history of reliable growth and dividend payments.
Written by Amit Madnani
