Marico

India | FMCG | Result Update | Rating Upgrade

Strong pricing power with improving volumes 30 October 2024

We maintain our positive outlook on Marico (MRCO IN) as it demonstrated strong Rating: Buy
potential for double-digit sales growth in the medium term, fueled by price growth, Target Price: INR 752
focus on direct reach and robust performance in its Foods and Premium Personal Upside: 20%
care segments. Furthermore, there is an upside risk in margin in the long term as CMP: INR 629
new business scales up. We upgrade to Buy from Accumulate with a higher TP of As on 29 October 2024
INR 752 from INR 730 on 50x (unchanged) on as we roll-forward to Dec ’26E P/E.
Key data
Volume improved sequentially, as expected: Q2 net sales increased by 7.6% YoY to INR Bloomberg MRCO IN
26.6bn, meeting expectations, driven by an 8% rise in the domestic business, with volume
Reuters Code MRCO.NS
growth improving to 5% from 4% in Q1. The Parachute segment grew 4% in volume, even
Shares outstanding (mn) 1295
after a minor volume impact from volume reduction in a key price point. Saffola edible oil
Market cap (INR bn/USD mn) 815/9688
saw flat volume growth and a 2% value increase as the pricing cycle turned slightly
Enterprise Value (INR bn/USD mn) 811/9648
favorable after eight quarters. Value-added hair oil (VAHO) dropped 8% YoY due to market
Avg daily volume 3M (INR mn/USD mn) 1916/23
sluggishness and competition, particularly in the lower segment. However, Foods grew 28%
52 week high/low 720/486
Global Markets Research

YoY, supported by mid-teen growth in Saffola oats, achieving a milestone with >INR 10bn in
Free float (%) 41
annual revenue run-rate (ARR). The management anticipates stronger domestic revenue
Note: as on 29 October 2024; Source: Bloomberg
growth in H2, with support from pricing adjustments (including additional 4% price hike in
Parachute and a 15% price hike in edible oils due to higher import duties) and gradual volume
Price chart
gains. The international business delivered 13% growth in constant-currency. MRCO aims
750
to maintain this double-digit growth in the medium term.
700
Project SETU progressing as planned; digital-first portfolio scaling in-line: Project 650

SETU, aimed at expanding direct outlet reach, has now extended to four more states, (INR)
600

bringing its reach to a total of 10 states, with promising initial results. Additionally, the 550
500
new digital-first portfolio has performed ahead of expectations, surpassing ARR of INR
450
5.25bn in Q2. In the domestic market, the combined revenue share of Foods and
400
Premium Personal Care, including Digital-first brands, rose to ~21% in H1, with a target Oct-23 Feb-24 Jun-24 Oct-24
to grow to ~25%+ by FY27.
Source: Bloomberg

Levers in place to drive margin expansion in the long term: EBITDA margin contracted
50bps YoY to 19.6%, in-line with our expectations. For FY25, although the management Shareholding (%)
Q3 Q4 Q1 Q2
FY24 FY24 FY25 FY25
previously indicated a goal to sustain EBITDA margin at FY24 level, the recent increase
Promoter 59.4 59.4 59.3 59.2
in input costs may affect margin by 40-50bps YoY. Nevertheless, long-term outlook is
% Pledged 0.1 0.1 0.1 0.1
positive, with anticipated margin expansion driven by improvements in Food
FII 25.7 25.5 24.6 24.9
segments and digital-first brands (as the business continues to scale), favorable
DII 10.0 10.2 11.4 11.3
product mix and focus on premiumization.
Others 4.9 4.9 4.7 4.6
Upgrade to Buy with a higher TP of INR 752: We largely maintain our estimates for
Source: BSE
FY25, FY26 and FY27 and upgrade MRCO to Buy from Accumulate as stock has
corrected by 8% in the past three months. We arrive at a higher TP of INR 752 from INR Price performance (%) 3M 6M 12M
730 on 50x (unchanged) on as we roll-forward to Dec ’26E P/E.
Nifty (1.5) 8.1 28.5
Marico (7.9) 22.0 17.0
NSE Mid-cap (3.6) 10.7 45.3
Key Financials
NSE Small-cap (4.4) 6.9 44.0
YE March FY23 FY24 FY25E FY26E FY27E
Revenue (INR mn) 97,640 96,530 105,638 115,861 128,290
YoY (%) 2.6 (1.1) 9.4 9.7 10.7
EBITDA (INR mn) 18,100 20,260 21,861 24,163 26,883
EBITDA margin (%) 18.5 21.0 20.7 20.9 21.0
Adj PAT (INR mn) 13,020 14,810 15,973 17,782 19,925 Amit Purohit
YoY (%) 6.3 13.7 7.9 11.3 12.1 Building Materials, FMCG, Paints
+91 22 6164 8594
Fully DEPS (INR) 10.1 11.5 12.4 13.8 15.4
[email protected]
RoE (%) 36.4 38.8 38.2 36.1 34.7
Associates
RoCE (%) 44.0 44.8 44.3 42.6 41.5
Rohit Harlikar
P/E (x) 62.3 54.8 50.8 45.6 40.7 Vidhi Puj
EV/EBITDA (x) 44.1 39.5 36.2 32.4 28.8
Note: Pricing as on 29 October 2024; Source: Company, Elara Securities Estimate
Elara Securities (India) Private Limited
Marico

Financials (YE March)

Income statement (INR mn) FY23 FY24 FY25E FY26E FY27E
Net Revenue 97,640 96,530 105,638 115,861 128,290
We expect a revenue CAGR of 10%
EBITDA 18,100 20,260 21,861 24,163 26,883
in FY24-27E
Less: Depreciation & Amortisation 1,550 1,580 1,660 1,741 1,821
EBIT 16,550 18,680 20,200 22,422 25,063
Less: Interest Expense 560 730 720 720 720
Add: Other Income 1,440 1,420 1,519 1,629 1,753
PBT 17,430 19,370 20,999 23,332 26,095
Less Taxes 4,210 4,350 4,716 5,240 5,860
Reported PAT 13,220 15,020 16,283 18,092 20,235
Minority Interest 200 210 310 310 310
Reported PAT after Minority Interest 13,020 14,810 15,973 17,782 19,925
Adjusted PAT 13,020 14,810 15,973 17,782 19,925
Balance Sheet (INR mn) FY23 FY24 FY25E FY26E FY27E
Share capital 1,290 1,290 1,290 1,290 1,290
Reserves 36,700 37,030 44,013 51,818 60,554
Minority Interests 1,570 3,370 3,370 3,370 3,370
Borrowings 4,750 3,830 3,830 3,830 3,830
Deferred Tax (Net) 320 2,110 2,110 2,110 2,110
Total Liabilities 44,630 47,630 54,613 62,418 71,154
Gross Block 31,150 37,180 38,380 39,580 40,780
Less: Accumulated depreciation 8,690 9,940 11,612 13,353 15,174
Net Block 22,460 27,240 26,768 26,227 25,606
Capital work in progress 670 440 320 320 320
Investments 10,960 6,020 6,020 6,020 6,020
Cash 7,560 9,430 17,297 25,213 33,929
Net working capital 2,980 4,500 4,208 4,638 5,278
Total Assets 44,630 47,630 54,613 62,418 71,154
Cash flow statement (INR mn) FY23 FY24 FY25E FY26E FY27E
Operating cash flow 16,250 14,870 17,926 19,093 21,105
Less: Capex 6,690 6,130 1,068 1,200 1,200
Free cash flow to firm 9,560 8,740 16,858 17,893 19,905
Investing cash flow (9,370) (1,190) (1,068) (1,200) (1,200)
Financing cash flow (5,110) (11,810) (8,991) (9,977) (11,188)
Net change in cash 1,770 1,870 7,867 7,916 8,717
Ratio Analysis FY23 FY24 FY25E FY26E FY27E
Income statement Ratios (%)
Revenue growth 2.6 (1.1) 9.4 9.7 10.7
EBITDA growth 7.7 11.9 7.9 10.5 11.3
PAT growth 6.3 13.7 7.9 11.3 12.1
EBITDA margin 18.5 21.0 20.7 20.9 21.0
Margins to remain flat at 21% in
Net margin 13.3 15.3 15.1 15.3 15.5
FY24-27E
Return and liquidity ratios
Net debt/Equity (x) (0.2) (0.2) (0.4) (0.5) (0.5)
ROE (%) 36.4 38.8 38.2 36.1 34.7
ROCE(%) 44.0 44.8 44.3 42.6 41.5
Per share data and Valuation ratios
Diluted EPS (INR) 10.1 11.5 12.4 13.8 15.4
EPS growth (%) 6.3 13.7 7.9 11.3 12.1
DPS (INR) 4.5 9.5 6.0 6.6 7.4
P/E ratio (x) 62.3 54.8 50.8 45.6 40.7
EV/EBITDA (x) 44.1 39.5 36.2 32.4 28.8
EV/Sales (X) 8.2 8.3 7.5 6.8 6.0
Price/Book(x) 21.4 21.2 17.9 15.3 13.1
FCFF yield (%) 1.1 1.0 2.0 2.1 2.3
Dividend yield (%) 0.7 1.5 0.9 1.1 1.2

Note: Pricing as on 29 October 2024; Source: Company, Elara Securities Estimate

2 Elara Securities (India) Private Limited

 Marico

Quarterly financials
Y/E March (INR mn) Q2FY25 Q2FY24 YoY (%) Q1FY25 QoQ (%) Q2FY25E Variance (%)
Net sales 26,640 24,760 7.6 26,430 0.8 26,640 (0.0)
Operating expenses 21,420 19,790 8.2 20,170 6.2 21,382 0.2
% of sales 80.4 79.9 76.3 80.3
EBITDA 5,220 4,970 5.0 6,260 (16.6) 5,258 (0.7)
EBITDA margins (%) 19.6 20.1 23.7 19.7
Sales growth aided by
Other income 820 380 115.8 370 121.6 300 173.3
sequential volume uptick in
Interest 110 200 170 170
domestic business and pricing
Depreciation 410 390 410 - 420 (2.4)
cycle turning favorable in
PBT 5,520 4,760 16.0 6,050 (8.8) 4,968 11.1
edible oil
Tax 1,190 1,160 2.6 1,310 (9.2) 1,150 3.5
Effective tax rate (%) 21.6 24.4 21.7 23.1
Minority interest 100 70.0 100.0 80.0
Reported PAT 4,230 3,530 19.8 4,640 (8.8) 3,738 13.2
Adjusted PAT 4,230 3,530 19.8 4,640 (8.8) 3,738 13.2
NPM (%) 15.9 14.3 17.6 14.0

Source: Company, Elara Securities Estimate

Exhibit 1: Key ratios

YE March (%) Q2FY25 Q2FY24 YoY bps chg Q1FY25 QoQ bps chg Q2FY25E bps variance

Raw material cost 49.2 49.5 (30) 47.7 146 49.6 (38)

Staff costs 8.0 7.6 44 7.7 31 8.0 0

Advertising expenses 10.9 10.8 6 9.1 181 10.2 68

Other expenses 12.3 12.0 28 11.8 51 12.5 (15)

Effective tax rate 21.6 24.4 (281) 21.7 (9) 23.1 (159)

EBITDA margin was in-line Gross margin 50.8 50.5 30 52.3 (146) 50.4 38
with our expectation; margin
EBITDA margin 19.6 20.1 (48) 23.7 (409) 19.7 (14)
outlook is slightly weak due to
rise in input prices NPM 15.9 14.3 162 17.6 (168) 14.0 185

Source: Company, Elara Securities Estimate

Exhibit 2: Volume growth improved sequentially

30
24

25
20
(%)

12

15
8

8
10
7
5
5

5
4

4
3

5
2

2
1

1
-

0
(5)
(3)

(3)
(4)

(5)

(10)
(6)

Q2FY25
Q2FY22

Q3FY22

Q4FY22

Q1FY23

Q2FY23

Q3FY23

Q4FY23

Q1FY24

Q2FY24

Q3FY24

Q4FY24

Q1FY25

Domestic volume growth Domestic value growth

Source: Company, Elara Securities Research

Exhibit 3: Margin slightly dipped YoY due to higher operating expenses

60
50.0

50.5

51.3

51.6

52.3

50.8
47.4
45.0

44.9
44.5
43.7

43.6
42.5

50

40
23.7
23.2
(%)

21.2
20.6

20.1

19.6
19.4

30
18.5
17.9

17.5
17.5

17.3
16.0

20

10

0
Q2FY25
Q2FY22

Q3FY22

Q4FY22

Q1FY23

Q2FY23

Q3FY23

Q4FY23

Q1FY24

Q2FY24

Q3FY24

Q4FY24

Q1FY25

Gross margin EBITDA margin

Source: Company, Elara Securities Research

Elara Securities (India) Private Limited 3

Marico

Exhibit 4: Segment-wise performance – Subdued growth in Saffola Edible Oil and VAHO
Q2FY25 value Q2FY25 volume Market share
Category Comments
growth (%) growth (%) (%)
▪ Parachute Rigid registered 4% volume growth and 6% value growth. Decrease in volume in
one of the key price points impacted volume growth by 1%.
Parachute
coconut oil 10 4 54 (volume share) ▪ Volume offtakes grew in high single-digit, resulting in ~120bps gain in market share on MAT
(PCNO) basis.
▪ MRCO implemented another round of price hikes of ~4% at the end of Q2.
▪ Saffola Edible Oils registered flat volume growth, while revenues grew 2% YoY after the
pricing cycle for the brand turned slightly favorable.
▪ The brand implemented a price increase of ~15% for edible oil in response to the sharp hike
in import duties on vegetable oils recently.
Edible oil: 2 Edible oil: flat volume ▪ Foods ARR crossed INR 10bn.
Saffola
Foods: 28 growth Oats: 41 (value share)
▪ Saffola Oats delivered mid-teen growth, while newer franchises also fared healthily.
▪ Saffola Masala Millets was launched in Q2.
▪ True Elements and the plant-based nutrition portfolio of Plix maintained accelerated growth
momentum.
▪ Value-added hair oils declined 8% in value terms amid persistent sluggishness and
competitive headwinds in the bottom of the pyramid segment.
▪ The franchise gained ~110bps in value market share in Q2, as mid and premium segments of
Value added hair the franchise fared better.
(8) NA 28 (value share)
oils (VAHO)
▪ The growth trajectory of the franchise has bottomed out and MRCO expects gradually
improving trends ahead on the back of visible ATL investments and brand activations leading
into the festive season.
▪ The Digital-first brands crossed INR 5.25bn in ARR in Q2.
Post wash Leave-on Serums – ▪ Beardo continued to scale ahead of expectations and is on course to deliver double-digit
Premium 48% (volume share) EBITDA margin this year.
NA NA
personal care hair gels/waxes/creams 52% ▪ Beardo continued to scale well and is on course to deliver double-digit EBITDA margin this
(volume share) year.
▪ Just Herbs and personal care portfolio of Plix continued to gain traction.

Source: Company, Elara Securities Research

Exhibit 5: International business – Strong performance in MENA and South Africa regions
Q2FY25 constant-
Geography currency (CC) Comments
growth (%)
▪ The business stayed resilient amidst challenges in the operating environment, which progressively subsided in the latter half of
Bangladesh 8 Q2.

South East Asia 7 ▪ Growth led by recovery in home and personal care (HPC) demand in Vietnam.

Middle East and North Africa (MENA) 43 ▪ Strong momentum in the MENA region was led by robust growth in Egypt and the Gulf region.

South Africa 20 ▪ Strong growth in South Africa with both the Hair Care and Health Care franchises faring well.

Source: Company, Elara Securities Research

Exhibit 6: Trading above its five-year average P/E of 45x

65
60
55
50 51x
(x)

45
45x
40
35 39x
30
25
20
Oct-23
Oct-19

Oct-20

Oct-21

Oct-22

Oct-24
Feb-20

Jun-20

Feb-21

Jun-21

Feb-22

Jun-22

Feb-23

Jun-23

Feb-24

Jun-24

PE -SD +SD 5 Yr Avg

Source: Bloomberg, Company, Elara Securities Estimate

4 Elara Securities (India) Private Limited

 Marico

Exhibit 7: Valuation overview

(INR)

EPS – FY26E 13.8

EPS – FY27E 15.4

Target multiple (x) 50

EPS – December 2026E 15

Target price 752

Source: Elara Securities Estimate

Exhibit 8: Change in estimates

(INR mn) Earlier Revised % Change

FY25E FY26E FY27E FY25E FY26E FY27E FY25E FY26E FY27E

Revenue 104,889 115,433 127,859 105,638 115,861 128,290 0.7 0.4 0.3

EBITDA 21,944 24,182 26,825 21,861 24,163 26,883 (0.4) (0.1) 0.2

EBITDA margin (%) 20.9 20.9 21.0 20.7 20.9 21.0 (23) (9) (3)

PAT 16,038 17,797 19,880 15,973 17,782 19,925 (0.4) (0.1) 0.2

EPS (INR) 12.4 13.8 15.4 12.4 13.8 15.4 (0.4) (0.1) 0.2

TP (INR) 730 752 2.9

Rating Accumulate Buy

Source: Elara Securities Estimate

Elara Securities (India) Private Limited 5

Marico

Coverage History
780

680 AC 28
29

25
580
24
27
21 26
19 22 23
480
20

7 9 10 17 18
380 5 15
8
3 4 6 16
11 12 14
13
280 2
1

180

Aug-22
Aug-16

Aug-17

Aug-18

Jun-19
Aug-19

Aug-20

Aug-21

Aug-23

Aug-24
Oct-16

Oct-17

Oct-18

Oct-19

Oct-20

Apr-21

Oct-21

Oct-22

Oct-23

Oct-24
Dec-15

Jun-16

Dec-16

Jun-17

Dec-17

Jun-18

Dec-18

Dec-19

Jun-20

Dec-20

Jun-21

Dec-21

Jun-22

Dec-22

Jun-23

Dec-23

Jun-24
Feb-16
Apr-16

Feb-17
Apr-17

Feb-18
Apr-18

Feb-19
Apr-19

Feb-20
Apr-20

Feb-21

Feb-22
Apr-22

Feb-23
Apr-23

Feb-24
Apr-24
Not Covered Covered

Date Rating Target Price Closing Price

22 3-Feb-2023 Accumulate INR 560 INR 494

23 5-May-2023 Buy INR 590 INR 494

24 2-Jun-2023 Accumulate INR 603 INR 549

25 28-Jul-2023 Accumulate INR 623 INR 574

26 29-Jan-2024 Accumulate INR 580 INR 517

27 6-May-2024 Accumulate INR 600 INR 530

28 5-Aug-2024 Accumulate INR 730 INR 672

29 29-Oct-2024 Buy INR 752 INR 629

Guide to Research Rating

BUY Absolute Return >+20%

ACCUMULATE Absolute Return +5% to +20%

REDUCE Absolute Return -5% to +5%

SELL Absolute Return < -5%

6 Elara Securities (India) Private Limited

Disclosures & Confidentiality for non U.S. Investors
The Note is based on our estimates and is being provided to you (herein referred to as the “Recipient”) only for information purposes. The sole purpose of this Note is to provide preliminary information on the
business activities of the company and the projected financial statements in order to assist the recipient in understanding / evaluating the Proposal. Nothing in this document should be construed as an advice to buy
or sell or solicitation to buy or sell the securities of companies referred to in this document. Each recipient of this document should make such investigations as it deems necessary to arrive at an independent
evaluation of an investment in the securities of companies referred to in this document (including the merits and risks involved) and should consult its own advisors to determine the merits and risks of such an
investment. Nevertheless, Elara Securities (India) Private Limited or any of its affiliates is committed to provide independent and transparent recommendation to its client and would be happy to provide any
information in response to specific client queries. Elara Securities (India) Private Limited or any of its affiliates have not independently verified all the information given in this Note and expressly disclaim all liability
for any errors and/or omissions, representations or warranties, expressed or implied as contained in this Note. The user assumes the entire risk of any use made of this information. Elara Securities (India) Private
Limited or any of its affiliates, their directors and the employees may from time to time, effect or have effected an own account transaction in or deal as principal or agent in or for the securities mentioned in this
document. They may perform or seek to perform investment banking or other services for or solicit investment banking or other business from any company referred to in this Note. Each of these entities functions
as a separate, distinct and independent of each other. This Note is strictly confidential and is being furnished to you solely for your information. This Note should not be reproduced or redistributed or passed on
directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose. This Note is not directed or intended for distribution to, or use by, any person or entity who is a citizen
or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject Elara Securities (India)
Private Limited or any of its affiliates to any registration or licensing requirements within such jurisdiction. The distribution of this document in certain jurisdictions may be restricted by law, and persons in whose
possession this document comes, should inform themselves about and observe, any such restrictions. Upon request, the Recipient will promptly return all material received from the company and/or the Advisors
without retaining any copies thereof. The Information given in this document is as of the date of this report and there can be no assurance that future results or events will be consistent with this information. This
Information is subject to change without any prior notice. Elara Securities (India) Private Limited or any of its affiliates reserves the right to make modifications and alterations to this statement as may be required
from time to time. However, Elara Securities (India) Private Limited is under no obligation to update or keep the information current. Neither Elara Securities (India) Private Limited nor any of its affiliates, group
companies, directors, employees, agents or representatives shall be liable for any damages whether direct, indirect, special or consequential including lost revenue or lost profits that may arise from or in connection
with the use of the information. This Note should not be deemed an indication of the state of affairs of the company nor shall it constitute an indication that there has been no change in the business or state of affairs
of the company since the date of publication of this Note. The disclosures of interest statements incorporated in this document are provided solely to enhance the transparency and should not be treated as
endorsement of the views expressed in the report. Elara Securities (India) Private Limited generally prohibits its analysts, persons reporting to analysts and their family members from maintaining a financial interest
in the securities or derivatives of any companies that the analysts cover. The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject
company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report.
Any clarifications / queries on the proposal as well as any future communication regarding the proposal should be addressed to Elara Securities (India) Private Limited. It is important to note that any dispute with
respect to this research report, would not have access to stock exchange investor redressal forum or arbitration mechanism.
Elara Securities (India) Private Limited was incorporated in July 2007 as a subsidiary of Elara Capital (India) Private Limited.
Elara Securities (India) Private Limited is a SEBI registered Stock Broker in the Capital Market and Futures & Options Segments of National Stock Exchange of India Limited [NSE], in the Capital Market Segment of
BSE Limited [BSE] and a Depository Participant registered with Central Depository Services (India) Limited [CDSL].
Elara Securities (India) Private Limited’s business, amongst other things, is to undertake all associated activities relating to its broking business.
The activities of Elara Securities (India) Private Limited were neither suspended nor has it defaulted with any stock exchange authority with whom it is registered in last five years. However, during the routine course
of inspection and based on observations, the exchanges have issued advise letters or levied minor penalties on Elara Securities (India) Private Limited for minor operational deviations in certain cases. Elara Securities
(India) Private Limited has not been debarred from doing business by any Stock Exchange / SEBI or any other authorities; nor has the certificate of registration been cancelled by SEBI at any point of time.
Elara Securities (India) Private Limited offers research services primarily to institutional investors and their employees, directors, fund managers, advisors who are registered or proposed to be registered.
Details of Associates of Elara Securities (India) Private Limited are available on group company website www.elaracapital.com
Elara Securities (India) Private Limited is maintaining arms-length relationship with its associate entities.
Research Analyst or his/her relative(s) may have financial interest in the subject company. Elara Securities (India) Private Limited does not have any financial interest in the subject company, whereas its associate
entities may have financial interest. Research Analyst or his/her relative does not have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding
the date of publication of Research Report. Elara Securities (India) Private Limited does not have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately
preceding the date of publication of Research Report. Associate entities of Elara Securities (India) Private Limited may have actual/beneficial ownership of 1% or more securities of the subject company at the end
of the month immediately preceding the date of publication of Research Report. Research Analyst or his/her relative or Elara Securities (India) Private Limited or its associate entities does not have any other material
conflict of interest at the time of publication of the Research Report.
Research Analyst or his/her relative(s) has not served as an officer, director or employee of the subject company.
Research analyst or Elara Securities (India) Private Limited have not received any compensation from the subject company in the past twelve months. Associate entities of Elara Securities (India) Private Limited may
have received compensation from the subject company in the past twelve months. Research analyst or Elara Securities (India) Private Limited or its associate entities have not managed or co-managed public offering
of securities for the subject company in the past twelve months. Research analyst or Elara Securities (India) Private Limited or its associates have not received any compensation for investment banking or merchant
banking or brokerage services from the subject company in the past twelve months. Research analyst or Elara Securities (India) Private Limited or its associate entities may have received any compensation for
products or services other than investment banking or merchant banking or brokerage services from the subject company or third party in connection with the Research Report in the past twelve months.

Disclaimer & Standard warning

Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or
provide any assurance of returns to investors.
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer for non U.S. Investors

The information contained in this note is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information,
there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional
advice after a thorough examination of the particular situation.

Disclosures for U.S. Investors

The research analyst did not receive compensation from Marico Limited.
Elara Capital Inc.’s affiliate did not manage an offering for Marico Limited.
Elara Capital Inc.’s affiliate did not receive compensation from Marico Limited in the last 12 months.
Elara Capital Inc.’s affiliate does not expect to receive compensation from Marico Limited in the next 3 months.

Disclaimer for U.S. Investors

This material is based upon information that we consider to be reliable, but Elara Capital Inc. does not warrant its completeness, accuracy or adequacy and it should not be relied upon as such.
This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable
for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue. Prices, values or income from any securities
or investments mentioned in this report may fall against the interests of the investor and the investor may get back less than the amount invested. Where an investment is described as being likely to yield income,
please note that the amount of income that the investor will receive from such an investment may fluctuate. Where an investment or security is denominated in a different currency to the investor’s currency of
reference, changes in rates of exchange may have an adverse effect on the value, price or income of or from that investment to the investor. The information contained in this report does not constitute advice on
the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a
recommendation of particular securities, financial instruments or strategies to you. Before acting on any recommendation in this material, you should consider whether it is suitable for your particular
circumstances and, if necessary, seek professional advice.
Certain statements in this report, including any financial projections, may constitute “forward-looking statements.” These “forward-looking statements” are not guarantees of future performance and are based
on numerous current assumptions that are subject to significant uncertainties and contingencies. Actual future performance could differ materially from these “forward-looking statements” and financial
information.

Elara Securities (India) Private Limited 7

 India Europe USA Asia / Pacific
Elara Securities (India) Private Limited Elara Capital Plc. Elara Securities Inc. Elara Capital (Asia) Pte.Ltd.
One International Center, Tower 3, 6th Floor, The Grove, 230 Park Avenue, Suite 2415, One Marina Boulevard,
21st Floor, Senapati Bapat Marg, 248A Marylebone Road, New York, NY 10169, USA Level 20,
Elphinstone Road (West) London, NW1 6JZ, Tel: +1 212 430 5870 Singapore 018989
Mumbai – 400 013, India United Kingdom Fax: +1 212 208 2501 Tel : +65 6978 4047
Tel : +91 22 6164 8500 Tel : +44 20 7486 9733

Managing
Harendra Kumar | [email protected] | +91 22 6164 8571
Director

Head of
Dr Bino Pathiparampil | [email protected] | +91 22 6164 8572
Research

Sales Team

Hitesh Danak - [email protected] - +91 22 6164 8543

India Ashok Agarwal - [email protected] - +91 22 6164 8558
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Elara Securities (India) Private Limited

Registered Office Address: One International Center, Tower 3, 21st Floor, Senapati Bapat Marg, Elphinstone Road (West) Mumbai – 400 013, India Tel : +91 22 6164 8500
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Investor Grievance Email ID: [email protected] - Tel. +91 22 6164 8509
Compliance Officer: Mr. Anand Rao - Email ID: [email protected] - Tel. +91 22 6164 8509

8 Elara Securities (India) Private Limited