Tag FMCG Stocks

Marico Ltd
Marico Ltd. Shows Strong Resilience Amid Market Volatility and Stock Performance

Business and Industry Overview: 

Marico Limited is a big Indian company. It started in 1987. Its head office is in Mumbai. It makes products for health, beauty, and wellness. It makes hair oils, skin care items, cooking oils, healthy food, men’s grooming products, and fabric care products. It owns popular brands like Parachute, Saffola, Livon, Set Wet, and Nihar Naturals. Marico sells products in more than 25 countries in Asia and Africa. It has brands like HairCode, Isoplus, X-Men, and Thuan Phat in other countries. Marico has 8 factories in India. These are in Puducherry, Perundurai, Kanjikode, Jalgaon, Paldhi, Dehradun, Baddi, and Paonta Sahib. Harsh Mariwala started Marico. He is the Chairman. Saugata Gupta is the Managing Director and CEO since March 2014. In 2019–2020, Marico earned ₹7,315 crore. In 2022–2023, it earned ₹9,764 crore and made ₹1,362 crore profit. Marico is growing every year. It is also buying small brands like Beardo, Just Herbs, and True Elements. This helps it grow more and reach new customers. Marico is also doing good work for society. It supports education, helps women, supports safe farming, and works on water saving. It also wants to use less plastic and eco-friendly packaging. Marico is a trusted and growing company. It helps people and also cares for the environment. 

Latest Stock News: 

In April 2025, Marico’s stock is doing well. On April 11, its share price closed at ₹709.95, up by 2.38%. The company showed strong growth in profit and sales. In Q2 FY25, it made ₹433 crore profit, which is 20% more than last year. Its revenue went up to ₹2,664 crore. The stock went up after this news. In October 2024, it even hit a high of ₹687.30. Marico’s stock price in the past 52 weeks moved between ₹495.15 and ₹736.90. Experts are positive about the stock. The owner of the Saffola and Parachute brands showed strong growth for four weeks in a row. It broke out of a symmetrical pattern on the weekly chart. A bullish candle was formed, which shows people are buying from lower levels. On April 9, FMCG stocks, including Marico, went up. This happened after the RBI reduced the repo rate and gave a better inflation outlook. The FMCG index rose more than 3%. Stocks like Britannia, Godrej Consumer Products, Hindustan Unilever, and Marico rose by 4% to 6%.Marico Limited is going to have a conference call for investors and analysts on May 2, 2025, at 6:00 p.m. IST. During this call, the company will share its financial results for the quarter and year ending March 31, 2025. These results will be available on Marico’s website after the Board of Directors’ meeting on the same day. Mr. Saugata Gupta, the CEO, and Mr. Pawan Agrawal, the CFO, will speak during the call. The company’s latest update for Q4 FY25 shows stable demand, with improvements in rural areas and mixed performance in urban areas. Marico expects better results in the coming quarters, supported by its strong brands and strategies. This call will give important details about Marico’s financial performance and future plans. 

Potentials: 

Marico has many plans to grow in the future. Right now, its products are in 1 million stores across India. By 2027, it wants to reach 1.5 million stores. This will make it easier for more people to buy its products. The company is focusing on selling more healthy foods and premium personal care items. It wants these two areas to make up 25% of its sales in India by 2027. To do this, Marico will bring in more products in these areas. Marico also has brands like Beardo and Plix that sell mainly online. It wants each of these brands to earn ₹500 crore in the next 4 to 5 years. Marico will sell these brands on websites to reach more customers.  The company is also working to grow in other countries like Vietnam and South Africa. Right now, it makes a lot of money from Bangladesh. But Marico wants to sell more in other countries to not depend on just one market. It wants to grow in these new countries with strong sales. Finally, Marico wants to be good for the environment. It is working on eco-friendly packaging to use less plastic. Marico is also focusing on making products that are healthy and good for people’s wellness. This will help Marico meet the needs of people who care about their health and the planet. In short, Marico plans to sell in more stores, grow in foods and personal care, focus on online sales, expand to new countries, and be more eco-friendly. These steps will help Marico grow and succeed in the future. 

Analyst Insights: 

  • Market capitalisation: ₹ 91,339 Cr. 
  • Current Price: ₹ 705 
  • 52-Week High/Low: ₹ 737 / 495 
  • Stock P/E: 63.3 
  • Dividend Yield: 1.34% 
  • Return on Capital Employed (ROCE): 37.0% 
  • Return on Equity: 29.3% 

Marico Ltd is a strong company with good financial results, making it a good option for a buy recommendation. It is a leader in the FMCG market, holding 62% market share in coconut oil and 53% in leave-on serums. These strong positions help it stay ahead of competitors and show the brand’s strength. The company has great profits. Its Return on Equity (ROE) is 38.5%, and Return on Capital Employed (ROCE) is 43.1%. These numbers show that Marico is using its money efficiently and making good profits. Marico’s net profit grew by 4.18% in the last quarter. This shows that the company is still doing well and growing, even in tough market conditions. Its success is mainly due to the good performance of its products, especially healthy foods and skincare, which are in demand as more people focus on health and wellness. Marico’s Price-to-Earnings (P/E) ratio is 56.85, which is high compared to other companies in the FMCG sector. This could mean the stock is expensive. However, because of Marico’s strong financial results and market position, the higher price is justified. The company also offers a 1.34% dividend yield, which makes it attractive for investors who want regular income. 

Overall, Marico’s steady growth, strong brand, good profits, and strong market position in health-focused products make it a solid investment choice. Even though its stock price is high, the company’s ability to keep growing and earning makes it a good buy for long-term investors. 

Pidilite Industries Ltd
Pidilite Industries Faces ₹16.03 Cr GST Penalty: Impact on Stock & Future Outlook

Business and Industry Overview: 

Pidilite Industries Limited is a leading manufacturer of adhesives and sealants, construction chemicals, craftsmen products, DIY products, and polymer emulsions in India. Most of the products have been developed through strong in-house R&D. The brand name Fevicol has become synonymous with adhesives for millions in India and is ranked amongst the most trusted brands in the country. Some of their other major brands are M-Seal, Fevikwik, Fevistik, Roff, Dr. Fixit, Fevicryl, Motomax, Hobby Ideas, and Araldite.  

Since its inception in 1959, Pidilite Industries Limited has been a pioneer in consumer and specialty chemicals in India, committed to quality and innovation. For decades, it has developed products for both small and large applications, catering to homes and industries, forging strong bonds with people across various occupations. From adhesives, sealants, waterproofing solutions, and construction chemicals to arts & crafts, industrial resins, automotive chemicals, organic pigments, and polymers, its diverse product portfolio continues to evolve. Today, its brands are trusted household and industrial names, making it the market leader in adhesives. Pidilite Industries makes products in different parts of India. Its factories are in Mahad (Maharashtra), Vapi (Gujarat), Baddi, and Kala Amb (both in Hi achal Pradesh). The company started in 1959 and has grown by buying other businesses. In 2015, it bought 70% of Nina Waterproofing Systems for ₹100 crore. In 2018, it purchased 70% of CIPY Polyurethanes for ₹96 crore. In 2020, it spent ₹2,100 crore to buy Huntsman Corporation’s Indian business. This helped Pidilite expand its adhesives and sealants. In 2022, it partnered with 100x.VC to support new business ideas. 

India’s specialty chemicals industry is growing fast. More people need chemicals for food, personal care, and home care products. India is the 6th largest chemical producer in the world and 3rd in Asia. It contributes 7% to India’s economy. In April-September 2024, India exported chemicals worth $14.09 billion. The industry is expected to reach $300 billion by 2030 and $1 trillion by 2040.  Many companies are expanding to meet demand. Global companies want to reduce dependence on China, giving India a big opportunity. A chemical project in Gujarat has attracted $12 billion in investments and created thousands of jobs.   

The Indian government is also helping. It introduced plans to boost drug manufacturing and allocated $23.13 million to chemicals in the 2024-25 budget. A project in Odisha has brought billions of dollars and 40,000 jobs. The government is also opening 25,000 new stores to sell affordable medicines.  Foreign companies are also investing. The industry got $22.7 billion in foreign investment between 2000 and 2024. By 2025, India expects $107.38 billion in new investments. In 2023, the Prime Minister launched projects worth $6.11 billion to support growth. The future of India’s chemical industry looks bright. Over the last five years, Pidilite’s market share has decreased from 12.63% to 11.47% 

Latest Stock News: 

Pidilite Industries’ stock is facing pressure, nearing its 52-week low after falling 5.54% in the last four days. It is underperforming its sector and trading below key moving averages. Over the past year, the stock has declined by 2.35%, while the Sensex has shown positive returns. 

The company received a tax penalty of ₹16.03 crore from the GST department on February 7, 2025, for the period from July 1, 2018, to March 31, 2018. The company is evaluating its legal options and stated that this penalty will not impact its financials or operations. Earlier, on December 30, 2024, Pidilite also received a ₹1.16 crore penalty from the Indore GST department for the 2017-18 to 2019-20 GST audit. 

Despite these tax issues, Pidilite reported an 8.22% rise in net profit to ₹552.42 crore in the October- December quarter, compared to ₹510.48 crore in the same period last year. 

Potentials: 

Pidilite Industries wants to sell more products and grow its business. Managing Director Bharat Puri said the FMCG sector must focus on increasing sales because demand in cities is slowing down. He believes that new products and better distribution can help companies stay ahead. 

The company sees modern retail stores and online shopping as big opportunities. Smaller brands are growing fast by reaching customers who do not have many choices. To keep up, Pidilite plans to use digital tools, try new ways of working, and study customer needs. 

Pidilite’s Managing Director Designate, Sudhanshu Vats, expects profits to keep rising because of strong market conditions. Experts believe the FMCG industry will grow steadily in the next 3-5 years, with a focus on selling more products rather than increasing prices. 

Modern stores and online shopping now account for 25% of FMCG sales. Pidilite wants to change its pricing, packaging, and sales methods to match customer needs. The company is also introducing premium products, trying new sales formats, and working closely with online stores to attract young customers like Millennials and Gen Z. 

The FMCG industry is changing fast due to quick commerce, better use of data, and customer demand for easy shopping. Pidilite is preparing for this shift by improving its supply chain, focusing on digital sales, and understanding new shopping habits. 

Pidilite Industries is working on new ideas, using technology, and reaching more customers to ensure long-term success in a changing market. 

Analyst Insights: 

  • Market capitalisation:₹ 1,36,155 Cr. 
  • Current Price:₹ 2,677 
  • 52-Week High/Low:₹ 3,415 / 2,620 
  • P/E Ratio: 68.0 
  • Dividend Yield: 0.60 % 
  • Return on Capital Employed (ROCE): 29.7 % 
  • Return on Equity (ROE): 22.8 % 

Pidilite Industries is a strong company with good financial health. It has very little debt and earns good returns on investments. The company also pays regular dividends to its investors. Its working capital has improved, meaning it manages its money better now. However, the stock is expensive. It is trading at a high price compared to its actual value. The stock has fallen in the last few days and is close to its lowest price in a year. Recent tax penalties and slow growth in the FMCG sector create some risks. For long-term investors, it is better to wait for the price to drop further, to around ₹2,500 or lower, before buying. Short-term traders should avoid buying now because the stock is not showing strong growth.