Recommendation : BUY
December 22, 2010
Income from Operations have increased by 13% to 778.76 crores in the September quarter from 692.2 crores in the corresponding quarter last year. Operating Profit Margins are similar to that of last year at 13% in this quarter. The breakdown of Quarterly Financial Statements is given below.
If we compare things annually, Income from Operations in 2010 increased 11% to 2660.76 crores from 2388.42 crores in 2009. Operatimg Profit Margins were more or less the same for both the years at 14%. The breakdown of Annual Financial Statements is given below.
Return over Capital Employed (ROCE) for the current year ending six months is coming out to be 20% as compared to an ROCE of 42% in the whole financial year of 2009-10.
Cash Conversion Cycle (CCC) for the current year ending six months is coming out to be 27.61 days as compared to 41.63 days for the whole financial year ending March 2010. The improvement seems to be because of their control on inventory which indicates to the increasing demand for their products.
Total Assets per Share of the company is coming out to be Rs. 18.11. Earning per Share of the company for the past four quarters is coming out to be Rs. 4.31. Current Price of the scrip is Rs. 124.80. Trailing P/E of the company is coming out to be 28.96.
Equity Section notes that there is a remarkable improvement in their Cash Conversion Cycle since March 2010 on account of their control over inventory levels. Therefore, Equity Section issues a BUY rating on Marico Limited. Though, Equity Section doesn't recommend this scrip for aggressive investors.
Discalimer : Equity Section doesn't hold this scrip.
Return over Capital Employed (ROCE) for the current year ending six months is coming out to be 20% as compared to an ROCE of 42% in the whole financial year of 2009-10.
Cash Conversion Cycle (CCC) for the current year ending six months is coming out to be 27.61 days as compared to 41.63 days for the whole financial year ending March 2010. The improvement seems to be because of their control on inventory which indicates to the increasing demand for their products.
Total Assets per Share of the company is coming out to be Rs. 18.11. Earning per Share of the company for the past four quarters is coming out to be Rs. 4.31. Current Price of the scrip is Rs. 124.80. Trailing P/E of the company is coming out to be 28.96.
Equity Section notes that there is a remarkable improvement in their Cash Conversion Cycle since March 2010 on account of their control over inventory levels. Therefore, Equity Section issues a BUY rating on Marico Limited. Though, Equity Section doesn't recommend this scrip for aggressive investors.
Discalimer : Equity Section doesn't hold this scrip.
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