Marico financial

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  • 1. Marico | 1QFY2012 Result Update July 27, 2011 Marico NEUTRAL CMP `167 Performance Highlights Target Price - (` cr) 1QFY12 1QFY11 % yoy Angel Est % Diff Investment Period - Revenue 1,048.6 787.4 33.2 909.2 15.3 EBITDA 125.1 105.6 18.5 120.0 4.3 Stock Info OPM (%) 11.9 13.4 (148bp) 13.2 (127bp) Sector FMCG PAT 85.0 73.7 15.3 78.4 8.4 Market Cap (` cr) 10,230 Source: Company, Angel Research Beta 0.5 Marico posted a strong performance for the quarter. Overall volume growth for 52 Week High / Low 173/110 the quarter stood at ~33.2%, of which organic growth stood at ~20% yoy and Avg. Daily Volume 175,629 inorganic growth due to the recently acquired entity International Consumer Face Value (`) 1 Products (ICP) in Vietnam came in at ~19%. Earnings for the quarter grew BSE Sensex 18,432 strongly by 15.3% yoy, despite significant margin contraction. We recommend Nifty 5,547 Neutral on the stock. Reuters Code MRCO.BO Bloomberg Code MRCO@IN Key highlights during the quarter: Volume growth in the consumer products business in India stood at ~15% yoy, with Parachute reporting ~10% yoy volume growth and Saffola growing by ~15% yoy. The hair oil category with the launch Shareholding Pattern (%) of new variants, such as Parachute Advanced Ayurvedic hot oil, Parachute Promoters 62.9 Advanced Ayurvedic cooling oil and Parachute Advanced Ayurvedic hair oil, MF / Banks / Indian Fls 6.7 performed well and gained market share. International business grew by 26% FII / NRIs / OCBs 26.3 yoy, led by the recent acquisition of 85% equity in ICP in Vietnam in February Indian Public / Others 4.1 2011. The company has also started to show increased focus on rural sales. Outlook and valuation: Marico’s volume growth in its key product categories has Abs. (%) 3m 1yr 3yr been impressive despite the price hikes taken. We have factored in ~18% CAGR Sensex (5.2) 2.0 29.1 over FY2011–13E in its focus brands and expect the international business to Marico 20.9 32.51 196.8 grow strongly at a ~30% CAGR over FY2011–13E, with the recent acquisition in Vietnam contributing ~5% to the top line in FY2012E and FY2013E. At the CMP of `167, the stock is trading at 25.x FY2013E. We believe the stock is fairly priced and, hence, we recommend Neutral on the stock. Key Financials Y/E March (` cr) FY2010 FY2011 FY2012E FY2013E Net Sales 2,661 3,128 3,643 4,185 % chg 11.4 17.6 16.5 14.9 Net Profit (Adj) 241.5 237.5 325.6 406.2 % chg 18.5 (1.6) 37.1 24.7 EBITDA (%) 14.1 13.1 14.2 14.6 EPS (`) 3.9 3.9 5.3 6.6 P/E (x) 42.4 43.1 31.4 25.2 P/BV (x) 15.5 11.2 8.4 6.6 RoE (%) 43.6 36.5 31.5 29.5 RoCE (%) 32.5 24.0 25.4 28.1 Sreekanth P.V.S EV/Sales (x) 4.1 3.4 3.0 2.6 022 – 3935 7800 Ext: 6841 EV/EBITDA (x) 28.2 26.3 20.4 16.9 sreekanth.s@angelbroking.com Source: Company, Angel ResearchPlease refer to important disclosures at the end of this report 1
  • 2. Marico | 1QFY2012 Result Update Exhibit 1: Quarterly Performance Y/E March (` cr) 1QFY12 1QFY11 % chg FY2011 FY2010 % chg Net Sales 1,049 787 33 3,128 2,661 17.6 Consumption of RM 595 403 47 1,618 1,262 28.2 (% of Sales) 57 51 52 47 Staff Costs 71 54 31 230 190 21.2 (% of Sales) 7 7 7 7 Advertising 102 94 9 346 351 (1.5) (% of Sales) 10 12 11 13 Other Expenses 156 131 19 524 483 8.6 (% of Sales) 15 17 17 18 Total Expenditure 923 682 35 2,719 2,286 18.9 Operating Profit 125 106 18 410 375 9.2 OPM 12 13 13 14 Interest 10 7 38 39 26 53.1 Depreciation & Amortisation 17 12 40 71 60 17.9 Other Income 9 4 108 28 18 52.6 PBT (excl. Extr Items) 108 91 18 328 308 6.5 Extr Income/(Expense) - - 49 (10) PBT (incl. Extr Items) 108 91 18 376 298 26.4 (% of Sales) 10 12 12 11 Provision for Taxation 21 16 30 85 64 32.1 (% of PBT) 20 18 23 22 Minority Interest 2 1 5 2 Reported PAT 85 74 15 286 232 23.6 PATM 8 9 9 9 Equity shares (cr) 61 61 61 61 Reported EPS (`) 1 1 15 5 4 22.6 Adjusted PAT 85 74 15 238 241 (1.6) Source: Company, Angel Research Double-digit volume growth in Parachute and Saffola Marico reported top-line growth of 33% yoy to `1,049cr (`787cr), higher than our estimates, driven by a mix of value growth and volume growth with core brands Parachute (Rigids) and Saffola posting volume growth of 10% and ~15%, respectively, for the quarter. Irrespective of a ~32% price hike in Parachute and ~12% in Saffola, the company managed to report impressive volume growth due to rise in its marketing initiatives and launch of budget packs in Parachute. The company’s market share in the branded coconut oil segment in India stood at 52.3% until June 2011. In the hair oil category, the company launched Parachute Advanced Ayurvedic hot oil, Parachute Advanced Ayurvedic cooling oil and Parachute Advanced Ayurvedic hair oil, all of which performed well and gained market share during the quarter. During the quarter, Saffola grew by ~15% yoy in volume. The brand, which was earlier in the healthy and premium edible oil category, has been extended to premium variety of rice under the brand Saffola Arise. It has also ventured into the breakfast cereal category with oats under the brand name Saffola Oats. Both the products have generated good response in the market. The company plans to enter the healthy food segment in the near future.July 27, 2011 2
  • 3. Marico | 1QFY2012 Result Update Exhibit 2: Robust top line backed by organic and inorganic growth   1,200 35.0 1,000 30.0 800 25.0 20.0 (`cr) (yoy %) 600 15.0 400 10.0 200 5.0 - - 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 Top-line (LHS) yoy growth (RHS) Source: Company, Angel researchExhibit 3: Parachute sales volume steady.... Exhibit 4: Saffola’s growth remains strong 16 14 25 22 14 20 18 18 18 12 10 10 10 10 9 15 15 10 8 15 13 13 13 8(%) (%) 6 5 5 10 4 5 2 - - 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12Source: Company, Angel Research Source: Company, Angel Research Earnings steady despite margins pressure… In terms of earnings, Marico posted growth of 15% yoy to `85cr (`74cr), primarily due to robust top line. Earnings for 1QFY2012 are not comparable, as the company had made a provision of excise duty during 1QFY2011 on coconut oil sold in packs up to 200ml. The company has discounted this provision and disclosed it as a contingent liability.July 27, 2011 3
  • 4. Marico | 1QFY2012 Result Update OPM down 148bp yoy as GM contracts by 549bp yoy Marico again witnessed a sharp contraction in its gross margin by 549bp yoy as copra, rice bran oil, safflower oil and HDPE prices trended high. Hence, the company’s OPM declined by 148bp yoy. The company managed to curtail the slippage in OPM by reducing ad spends and other expenditure.Exhibit 5: Earnings growth moderates Exhibit 6: OPM contracts 100bp as ad spends rise 80 40.0 60.0 52.9 52.5 56.1 49.7 48.8 50.2 70 47.3 47.0 20.0 50.0 43.3 60 - 40.0 50 (20.0) 40 ( %) 30.0 (%)(` cr) (40.0) 30 14.8 14.1 20.0 13.8 13.7 13.4 12.7 12.2 11.9 (60.0) 10.5 20 (80.0) 10.0 10 - (100.0) - (10) (120.0) 1Q10 3Q10 1Q11 3Q11 1Q12 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 PAT (LHS) yoy growth (RHS) OPM Gross marginSource: Company, Angel Research Source: Company, Angel Research International business registers strong 26% yoy growth International FMCG business grew strongly by 26% yoy. The business now comprises around 23% of the group’s turnover. Revenue of the business stood at `224cr for the quarter. In Bangladesh, Parachute commanded a volume share of ~80%. Hair Code hair dye established a market share of ~29%. MENA region experienced a better quarter compared to the last quarter, though uncertainties still prevail. In Egypt, Fiancee and Hair Code maintained its market share at ~57%. South Africa registered double-digit growth. Caicil continues to be the market leader in the kids hair care market. South East Asia, including Vietnam, witnessed high inflation of 15%. Code 10 and X-Men have been performing well in these markets.July 27, 2011 4
  • 5. Marico | 1QFY2012 Result Update Investment arguments Impressive volume growth across categories /strong pricing power: We expect Marico to post healthy volume in its core brands in FY2012E. The company has not witnessed significant slowdown in volume growth despite steep price hikes. Over the past few months, raw–material prices have been softening; so, we do not expect any steep price hikes further. Although margins will not improve significantly due to the softening of raw-material prices, but we believe they are likely to stabilise going forward. International business gaining momentum: International business now comprises ~23% to the company’s top line. Marico maintains its leadership position in different categories in different regions. The recently acquired ICP in Vietnam is expected to contribute ~ 5% to the company’s top line. We believe the international business will grow at a ~31% CAGR over FY2011–13E. Outlook and valuation Marico’s volume growth in its key product categories has been impressive despite the price hikes taken. We have factored in an ~18% CAGR over FY2011–13E in its focus brands and expect the company’s international business to grow at a strong ~30% CAGR over FY2011–13E, with the recent acquisition in Vietnam contributing ~5% to the top line in FY2012E and FY2013E. At the CMP of `167, the stock is trading at 25.x FY2013E. We believe the stock is fairly priced and, hence, we recommend Neutral on the stock. Key risks to our argument: 1) A sharp rise in key raw-material prices will drag down the margins 2) Lower demand in coconut hair oil due to price hikes 3) Increased competitive intensity in the core categories, 4) International business not gaining momentum as expected Exhibit 7: Change in estimates Old estimates New estimates % chg (` cr) FY12E FY13E FY12E FY13E FY12E FY13E Revenue 3,431 3,926 3,643 4,185 6.2 6.6 OPM (%) 14.2 14.5 14.2 14.6 (0) 10 EPS (`) 4.9 6.1 5.3 6.6 8.0 8.9 Source: Company, Angel ResearchJuly 27, 2011 5
  • 6. Marico | 1QFY2012 Result UpdateExhibit 8: Key assumptions Sales (` cr) FY2009 FY2010 FY2011 FY2012E FY2013E FY11-13E Focus Brands 1,926 2,128 2,490 3,043 3,502 18.6 Parachute (Rigids) 572 564 589 602 656 5.5 Nihar (CNO) 86 91 100 110 120 9.5 Hair Oils (Incl Nihar) 336 363 422 506 607 20.0 Saffola 334 351 415 478 549 15.0 International FMCG 427 578 718 1,060 1,244 31.6 Kaya (Incl Derma Rx from FY11) 157 182 245 287 326 15.3 Non Focus Brands 462 533 638 601 683 3.4 Total Revenue 2,388 2,661 3,128 3,643 4,185 15.7 YoY % Growth Focus Brands 24.1 10.5 17.0 22.2 15.1 Parachute (Rigids) 7.3 (1.6) 4.5 2.1 9.0 Nihar (CNO) 16.0 6.0 10.0 10.0 9.0 Hair Oils (Incl Nihar) 33.0 8.0 16.2 20.0 20.0 Saffola 23.0 5.0 18.5 15.0 15.0 International FMCG 38.2 35.5 24.2 47.6 17.3 Kaya (Incl Derma Rx from FY11) 57.6 15.7 34.8 17.1 13.5 Non Focus Brands 30.4 15.2 19.8 (5.9) 13.6 Total Revenue 25.3 11.4 17.6 16.5 14.9 Source: Company, Angel researchJuly 27, 2011 6
  • 7. Marico | 1QFY2012 Result UpdateExhibit 9: Peer Valuation Company Reco Mcap CMP TP Upside P/E (x) EV/Sales (x) RoE (%) CAGR # (` cr) (`) (`) (%) FY12E FY13E FY12E FY13E FY12E FY13E Sales PAT Asian Paints Neutral 30,100 3,138 - - 30.6 24.9 3.2 2.7 39.6 38.3 17.3 19.8 Britannia Accumulate 5,611 470 495 5 30.5 20.9 1.1 0.9 37.8 46.1 17.3 36.0 Colgate Reduce 13,258 975 869 (11) 30.2 25.8 5.0 4.3 111.7 108.0 14.9 12.9 Dabur Accumulate 19,235 111 119 8 26.1 22.2 3.7 3.2 46.7 43.3 21.6 21.3 GSKCHL Reduce 10,061 2,392 2,163 (10) 28.9 24.3 3.3 2.8 32.6 31.8 17.3 17.5 GCPL Accumulate 13,981 432 478 11 23.9 20.8 3.6 3.2 38.7 28.0 13.4 18.2 HUL Neutral 71,102 326 - - 27.9 24.4 3.1 2.7 74.8 74.6 12.5 17.1 ITC Neutral 155,381 201 - - 26.8 22.6 6.0 5.0 32.7 31.5 17.6 17.4 Marico Neutral 10,230 167 - - 31.4 25.2 3.0 2.6 31.5 29.5 15.7 30.8 Nestle Reduce 42,294 4,386 3,483 (21) 43.4 36.5 5.8 5.0 91.1 72.9 16.1 18.9Source: Company, Angel ResearchExhibit 10: Angel v/s Consensus estimates Top-line (` cr) FY2012E FY2013E EPS (`) FY2012E FY2013E Angel estimates 3,643 4,185 Angel estimates 5.3 6.6 Consensus 3,741 4,341 Consensus 5.4 6.6 Diff (%) (2.6) (3.6) Diff (%) (1.9) -Source: Company, Angel ResearchExhibit 11: Absolute returns of Marico vs. Sensex Exhibit 12: One-year forward P/E band 280% Sensex Marico 250 15x 18x 21x 24x 200 230% Share Price (`) 150 180% 100 130% 50 80% - Oct-10 Sep-10 Nov-10 Feb-11 May-11 Jun-11 Dec-10 Jan-11 Dec-05 Dec-07 Dec-09 Jul-10 Apr-11 Aug-10 Apr-05 Aug-06 Apr-07 Aug-08 Apr-09 Aug-10 Apr-11 Mar-11Source: Company, Angel Research Source: Company, Angel ResearchExhibit 13: One-yr forward P/E chart Exhibit 14: One-yr forward Premium v/s Sensex chart 35.0 120% 30.0 100% 25.0 80% 60% 20.0 40% 15.0 20% 10.0 0% 5.0 -20% -40% - -60% Nov-05 Nov-06 Nov-07 Nov-08 Nov-09 Nov-10 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Oct-02 Oct-03 Oct-04 Oct-05 Oct-06 Oct-07 Oct-08 Oct-09 Oct-10 Apr-02 Apr-03 Apr-04 Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11Source: Company, Angel Research Source: Company, Angel ResearchJuly 27, 2011 7
  • 8. Marico | 1QFY2012 Result Update Profit & Loss Statement (Consolidated) Y/E March (` cr) FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E Gross sales 1,907 2,390 2,662 3,129 3,645 4,187 Less: Excise duty 2 2 1 1 2 2 Net Sales 1,905 2,388 2,661 3,128 3,643 4,185 Total operating income 1,905 2,388 2,661 3,128 3,643 4,185 % chg 22.4 25.4 11.4 17.6 16.5 14.9 Total Expenditure 1,659 2,084 2,286 2,719 3,126 3,574 Cost of Materials 981 1,278 1,262 1,618 1,853 2,097 Advertising Exp 244 243 351 346 404 481 Personnel 127 166 193 230 270 314 Others 307 398 480 524 599 682 EBITDA 246 304 375 410 517 611 % chg 24.0 23.4 23.4 9.2 26.3 18.1 (% of Net Sales) 12.9 12.7 14.1 13.1 14.2 14.6 Dep.& Amortisation 31 36 60 71 79 83 EBIT 215 268 315 339 438 528 % chg 47.1 24.5 17.5 7.6 29.2 20.5 (% of Net Sales) 11.3 11.2 11.8 10.8 12.0 12.6 Interest & other Charges 31 36 26 39 45 41 Other Income 5 12 18 28 33 43 (% of PBT) 2.7 5.0 5.9 8.5 7.7 8.2 Share in profit of Associates 0 0 0 0 0 0 Recurring PBT 190 245 308 328 426 530 % chg 39.7 28.8 25.7 6.5 30.0 24.6 Prior Period & Extra Exp/(Inc.) (11) 15 10 (49) (10) 0 PBT (reported) 201 230 298 376 436 530 Tax 36 41 64 85 94 117 (% of PBT) 18.9 16.7 20.9 25.9 22.0 22.0 PAT (reported) 165 189 234 291 342 414 Add: Share of earn of asso. 0 0 0 0 0 0 Less: Minority interest (MI) 0 (0) 2 5 7 8 PAT after MI (reported) 165 189 232 286 336 406 ADJ. PAT 154 204 241 238 326 406 % chg 55.7 32.3 18.5 (1.6) 37.1 24.7 (% of Net Sales) 8.1 8.5 9.1 7.6 8.9 9.7 Basic EPS (`) 2.5 3.3 4.0 3.9 5.3 6.6 Fully Diluted EPS (`) 2.5 3.3 3.9 3.9 5.3 6.6 % chg 55.7 32.3 18.5 (1.6) 37.1 24.7July 27, 2011 8
  • 9. Marico | 1QFY2012 Result Update Balance Sheet (Consolidated) Y/E March (` cr) FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E SOURCES OF FUNDS Equity Share Capital 61 61 61 61 61 61 Preference Capital - - - - - - Reserves& Surplus 254 393 593 854 1,151 1,479 Shareholders’ Funds 315 454 654 915 1,213 1,541 Minority Interest - - 13 22 22 22 Total Loans 358 374 446 772 500 455 Total Liabilities 673 828 1,112 1,709 1,734 2,017 APPLICATION OF FUNDS Gross Block 315 414 468 640 696 735 Less: Acc. Depreciation 163 203 242 337 408 496 Net Block 151 210 226 304 288 239 Capital Work-in-Progress 65 58 113 65 104 147 Goodwill 126 128 146 519 524 529 Investments - 12 83 89 89 89 Deferred Tax Asset 98 64 62 30 30 30 Current Assets 528 670 897 1,220 1,284 1,682 Cash 75 90 111 213 150 358 Loans & Advances 106 130 190 218 255 293 Other 347 450 596 789 878 1,031 Current liabilities 295 314 414 518 585 699 Net Current Assets 233 355 483 703 699 983 Mis. Exp. not written off - - - - - - Total Assets 673 828 1,112 1,709 1,734 2,017 Cash Flow Statement (Consolidated) Y/E March (` cr) FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E Profit before tax 201 230 298 376 436 530 Depreciation 31 36 60 71 79 83 Change in Working Capital (89) (75) (135) (111) (92) (92) Interest / Dividend (Net) 28 30 15 23 25 11 Direct taxes paid 36 41 64 85 94 117 Others 19 2 39 49 47 17 Cash Flow from Oper. 153 182 212 323 401 432 (Inc.)/ Dec. in Fixed Assets (155) (95) (149) (497) (101) (86) (Inc.)/ Dec. in Investments 0 (12) (71) (9) (19) (21) Cash Flow from Invest. (155) (107) (219) (506) (120) (108) Issue of Equity 0 0 18 29 0 0 Inc./(Dec.) in loans 107 16 72 326 (272) (45) Dividend Paid (Incl. Tax) 45 47 47 47 47 60 Interest / Dividend (Net) 28 30 15 23 25 11 Cash Flow from Fin. 35 (60) 28 284 (344) (117) Inc./(Dec.) in Cash 32 15 21 102 (63) 208 Opening Cash balances 43 75 90 111 213 150 Closing Cash balances 75 90 111 213 150 358July 27, 2011 9
  • 10. Marico | 1QFY2012 Result Update Key Ratios Y/E March FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E Valuation Ratio (x) P/E (on FDEPS) 66.4 50.2 42.4 43.1 31.4 25.2 P/CEPS 54.9 42.3 33.6 28.6 24.7 20.9 P/BV 32.2 22.4 15.5 11.2 8.4 6.6 Dividend yield (%) 0.4 0.4 0.4 0.4 0.5 0.7 EV/Sales 5.7 4.5 4.1 3.4 3.0 2.6 EV/EBITDA 42.7 34.6 28.2 26.3 20.4 16.9 EV / Total Assets 15.6 12.7 9.5 6.3 6.1 5.1 Per Share Data (`) EPS (Basic) 2.5 3.3 4.0 3.9 5.3 6.6 EPS (fully diluted) 2.5 3.3 3.9 3.9 5.3 6.6 Cash EPS 3.0 3.9 4.9 5.8 6.8 8.0 DPS 0.7 0.7 0.7 0.7 0.8 1.1 Book Value 5.2 7.4 10.7 14.9 19.7 25.1 Returns (%) RoCE 38.6 35.7 32.5 24.0 25.4 28.1 Angel RoIC (Pre-tax) 54.2 49.6 43.0 37.0 43.0 48.2 RoE 60.7 53.0 43.6 36.5 31.5 29.5 Turnover ratios (x) Asset Turnover (Gross Block) 5.0 4.9 4.6 3.5 3.6 4.6 Inventory / Sales (days) 50 52 61 70 65 66 Receivables (days) 17 17 21 22 23 24 Payables (days) 49 42 46 48 52 53 Net working capital (days) 30 41 51 57 55 55July 27, 2011 10
  • 11. Marico | 1QFY2012 Result Update Research Team Tel: 022 - 39357800 E-mail: research@angelbroking.com Website: www.angelbroking.com DISCLAIMER This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stocks price movement, outstanding positions and trading volume, as opposed to focusing on a companys fundamentals and, as such, may not match with a report on a companys fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report. Disclosure of Interest Statement Marico 1. Analyst ownership of the stock No 2. Angel and its Group companies ownership of the stock No 3. Angel and its Group companies Directors ownership of the stock No 4. Broking relationship with company covered No Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%) Reduce (-5% to 15%) Sell (< -15%)July 27, 2011 11