Marico (MARICO)

FairStock Score: 46/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett-style value investor, I ask whether Marico is a wonderful business at a fair price. The numbers show a business with exceptional returns: ROE 43.12%, ROCE 45.16%, debt/equity only 0.12, Altman Z-score 10.36, and Piotroski F-score 8/9. Free cash flow is ₹742 Cr, and the latest quarter delivered ₹3,537 Cr sales and ₹460 Cr net profit. Promoter holding is 58.93%. That tells me the underlying enterprise is financially strong and probably has a durable moat, because high ROCE with low leverage is rare. But growth is the weak link: sales growth is just 3.34%, five-year revenue CAGR is 8.17%, and profit growth is -40.80%. Mr Market, however, is asking ₹865.20 per share, a ₹1.12 lakh Cr market cap, P/E 59.50, P/B 26.68, EV/EBITDA 32.57, and PEG 12.66. Against book value of ₹32.43 and a Graham Number of ₹95.54, the margin of safety is -725.42%. DCF intrinsic value of ₹122.83 also sits far below the market price. So this is not a Graham bargain; it is a quality compounder priced for perfection. The dividend yield is only 0.46%, and FairStock score is 46/100—mixed. I would classify Marico as a Slow Grower: excellent financial health, but current sales and profit trends do not justify such a rich valuation. I would wait for a lower price or clear profit recovery before buying, and I would monitor quarterly profit, sales growth, FCF, and whether valuation ever approaches DCF/Graham estimates.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer