Marico | 1QFY2013 Result Update

August 10, 2012

Marico
Performance Highlights
Quarterly Result(Consolidated)
(` cr) Revenue EBITDA OPM (%) Adjusted PAT 1QFY13 1,267 185 14.6 124 1QFY12 1,041 125 12.0 85 % yoy 21.7 47.7 257bp 45.7 4QFY12 918 110 12.0 71 % Diff 38.1 68.0 260bp 73.3

NEUTRAL
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Net Debt (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code FMCG 12,278 308 0.2 200/134 70,260 1 17,558 5,320 MRCO.BO MRCO@IN

`191 -

Source: Company, Angel Research

For 1QFY2013, Marico posted a 21.7% yoy growth in its consolidated net sales to `1,267cr, aided by a robust volume growth. The operating margin for the quarter rose by 257bp yoy to 14.6%. The growth in the OPM was led by a healthy 656bp expansion in gross margin to 49.4%. The improvement in margins was due to lower copra prices, a major raw material in the manufacture of coconut oil. The adjusted profit for the quarter grew by 45.7% yoy to `124cr. Key highlights during the quarter: The overall volume growth for the quarter stood at 14%. Volume growth in the consumer products business in India stood at ~16%, with Parachute(rigid packs) reporting ~18% yoy volume growth and Saffolas (refined edible oil) volume growing by ~12% yoy. The companys volume market share in the branded coconut oil segment in India (represented by Parachute and Nihar) stood at 56.5% for 1QFY2013 (vs. 53.1% in 1QFY2012). Saffola has maintained its leadership position in the super premium refined edible oils segment with a market share of 58.3% for 1QFY2013 (vs. 53.3% in 1QFY2012). The international business (IBG) grew by ~17% yoy during the quarter. However, organic growth for the IBG segment stood at a mere ~3% yoy, with the remaining 14% yoy growth coming on account of forex gain. Outlook and valuation: Going ahead, we expect Marico to post a healthy growth in the domestic business aided by its strong brands. The recent acquisitions made by the company too are expected to fuel growth in the future. At the current market price, the stock is trading at 22.5x FY2014E EPS. We believe the stock is fairly priced and hence, recommend a Neutral rating on the stock.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 59.8 3.6 29.4 7.2

Abs. (%) Sensex MRCO

3m 6.9 5.4

1yr 2.5

3yr 17.0

17.4 138.4

Key financials (Consolidated)

Y/E March (` cr) Net Sales % chg Net Profit (Adj) % chg EBITDA (%) EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2011 3,135 17.8 238 -1.6 13.3 3.9 49.3 12.8 36.5 24.9 3.9 29.3

FY2012 4,008 27.9 319 34.4 12.1 5.2 36.7 10.2 30.8 23.0 3.0 25.4

FY2013E 4,840 20.7 417 30.7 13.1 6.8 28.1 7.7 31.4 26.5 2.4 19.4

FY2014E 5,643 16.6 520 24.6 13.1 8.5 22.5 5.9 29.7 26.6 2.0 16.3
Amit Patil 022-39357800 Ext: 6503 amit.patil@angelbroking.com

V Srinivasan
022-39357800 Ext: 6831 v.srinivasan@angelbroking.com

Please refer to important disclosures at the end of this report

Marico | 1QFY2013 Result Update

Exhibit 1: Quarterly Performance (Consolidated)

Y/E March (` cr) Net Sales Consumption of RM (% of Sales) Staff Costs (% of Sales) Advertising (% of Sales) Other Expenses (% of Sales) Total Expenditure Operating Profit OPM Interest Depreciation & Amortisation Other Income PBT (excl. Extr Items) Extr Income/(Expense) PBT (incl. Extr Items) (% of Sales) Provision for Taxation (% of PBT) Minority Interest Reported PAT PATM Equity shares (cr) Reported EPS (`) Adjusted PAT
Source: Company, Angel Research

1QFY13 1,267 641 50.6 95 7.5 156 12.3 191 15.1 1,082 185 14.6 17 19 18 166 166 13.1 40 24.2 2 124 10 61 2.0 124

1QFY12 1,041 595 57.2 71 6.8 97 9.3 153 14.7 916 125 12.0 10 17 9 108 108 10.3 21 19.6 2 85 8 61 1.4 85

% chg 21.7 7.7 34.3 60.3 24.4 18.1 47.7 257bp 73.7 14.4 92.7 54.4 54.4 91.4

4QFY12 918 426 46.5 84 9.1 119 12.9 179 19.5 808 110 12.0 11 19 11 90 (2) 88 9.6 19 21.4 (0)

% chg 38.1 50.4 13.3 31.4 6.5 34.0 68.0 260bp 50.6 1.4 67.5 84.3 87.9 113.4

FY2012 4,667 2,425 52.0 336 7.2 523 11.2 784 16.8 4,068 599 12.8 25 83 29 520 520 11.1 104 20.0 8

FY2011 3,997 2,099 52.5 307 7.7 449 11.2 668 16.7 3,523 474 11.9 42 73 43 402 2 404 10.1 78 19.4 5 321 8 61 5.2 319

% chg 16.8 15.6 9.4 16.4 17.4 15.5 26.4 (40.4) 14.6 (32.7) 29.2 28.7 32.8

45.7

70 8 61

77.7

408 9 61

27.3

45.7 45.7

1.1 71

77.8 73.3

6.6 408

27.3 28.0

Exhibit 2: Actual vs Angel estimates

(` cr) Revenue EBITDA OPM (%) PAT
Source: Company, Angel Research

Actual 1,267 185 14.6 124

Angel Est 1,167 163 14.0 111

% yoy 8.6 13.1 58 11.3

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Marico | 1QFY2013 Result Update

Exhibit 3: Segmental performance (Consolidated)

Y/E Mar (` cr) Total Net Sales a) Consumer Products 1)Domestic 2)International b) Skin Care Total PBIT a) Consumer Products 1)Domestic 2)International b) Skin Care PBIT Margin (%) a) Consumer Products 1)Domestic 2)International b) Skin Care
Source: Company, Angel Research

1QFY2013 1QFY2012 1,270 1,190 934 256 81 397 202 185 17 (7) 31.3 17.0 19.8 6.7 (9.0) 1,043 981 762 218 63 263 134 118 16 (6) 25.2 13.7 15.5 7.4 (8.9)

% chg 4QFY2012 21.8 21.3 22.6 17 29 50.8 50.3 56.5 5.2 913 839 620 218 74 240 122 109 13 (4) 26.2 14.5 17.5 6.0 (5.1)

% chg 39.1 41.8 50.6 17 8 65.7 66.1 70.4 30.1

Double-digit volume growth in Parachute and Saffola

For 1QFY2013, Marico reported a robust top-line growth of 21.7% yoy to `1,267cr. The growth was driven by a mix of value and volume growth, with core brands Parachute (rigids) and Saffola posting volume growth of ~18% and ~12%, respectively for the quarter. The value added hair oils posted a volume growth of ~25%. The companys volume market share in the branded coconut oil segment in India (represented by Parachute and Nihar) stood at 56.5% for 1QFY2013 (vs. 53.1% in 1QFY2012). During the quarter, Saffolas volume grew by a healthy ~12% yoy. Saffola has maintained its leadership position in the super premium refined edible oils segment with a market share of 58.3% for 1QFY2013 (vs 53.3% in 1QFY2012). The brand, which was earlier in the healthy and premium edible oil category, has been extended to the premium variety of rice under the brand Saffola Arise. Saffola, with a ~12% value market share in the oats category, has emerged as the number two player in the category. Value added hair oils posted volume growth of 25%. In the hair oil category, the company has recently launched Parachute Advanced Ayurvedic hot oil, Parachute Advanced Ayurvedic cooling oil and Parachute Advanced Ayurvedic hair oil.

May 9, 2012

Marico | 1QFY2013 Result Update

Exhibit 4: Top-line growth aided by robust volume growth

1,400 1,200 1,000 (`cr) 800 600 1,041 1,058 1,267 400 779 779 818 747 200 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 12.5 12.5 22.1 24.1 32.3 29.4 25.1 22.8 21.7 35.0 30.0 25.0 20.0 15.0 10.0 5.0 (yoy %)

974

Top-line (LHS)

yoy growth (RHS)

Source: Company, Angel research

Exhibit 5: Parachute records robust 18% volume growth

20 18 16 14 12 (%) 10 8 6 4 2 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 5 5 14 10 10 6 13 11 18

Exhibit 6: Saffola bounces back to double digit growth

20 18 16 14 12 (%) 10 8 6 4 2 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 3 18 18 15 13 11 15 15 12

Source: Company, Angel Research

Source: Company, Angel Research

OPM up 257bp yoy, led by 656bp improvement in gross margins

Marico posted a 257bp yoy expansion in its OPM to 14.6%. The growth in the OPM was led by a 656bp expansion in gross margins to 49.4%. The improvement in margins was due to lower copra prices, a major raw material in the manufacture of coconut oil. On an average, copra prices were down by 38% yoy during 1QFY2013. The increase in gross margins was to a large extent offset by a 296bp increase in advertising expenditure. Advertising expenditure rose on account of higher expenditure due to investments to support existing brands and new initiatives. Consequently, the net profit recorded a robust 45.7% yoy growth to `124cr, albeit on a lower base.

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Marico | 1QFY2013 Result Update

Exhibit 7: Gross and operating margins

60.0 50.0 40.0 50.2 50.2 53.5 47.3 47.0 42.8 45.3 48.5 49.4

Exhibit 8: Earnings performance

140 120 100 80 (` cr) 60 40 72 72 70 57 59 84 71 20 1Q11 2Q11 3Q11 4Q11 (4) 1Q12 2Q12 3Q12 4Q12 (106.9) 124 14.6 14.8 14.8 11.8 15.3 9.4 21.0 (2.7) 45.7 60.0 40.0 20.0 (40.0) (60.0) (80.0) (100.0) (120.0) ( %) (20.0)

(%)

30.0 20.0 10.0 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 12.7 12.7 12.2 10.5 12.0 12.0 11.5 12.0

(20)

OPM

Gross margin

PAT (LHS)

yoy growth (RHS)

Source: Company, Angel Research

Source: Company, Angel Research

International business registers 17% yoy growth largely on back of forex gains
Maricos International FMCG Business Group (IBG) recorded ~17% yoy growth in 1QFY2013 and registered a turnover of `255cr. However, organic growth for the IBG segment stood at a mere ~3% yoy, with the remaining 14% yoy growth coming on account of forex gain. The business now constitutes around 24% of the groups turnover. High inflation, slowing GDP growth and a sharp depreciation in the Bangladeshi Taka has led to a 2% decline in revenues from Bangladesh. However, on a positive note, Parachute continues to hold a market share of ~80% and Hair Code hair dye reported a market share of ~29%, thus establishing itself as the number 1 player in the hair dye market in the country. During the quarter, Marico introduced variants of value added hair oils under the brand Nihar. In all, Bangladesh contributed around 40% of the overall sales of IBG. The Middle East and North Africa (MENA) region witnessed a better quarter due to the improving overall business scenario. The Hair Code business performed well during the quarter. Fiance was backed by campaign reinforcing its value for money (VFM) positioning. Fiance also made a foray into the gel segment on the VFM platform towards the end of the quarter. The MENA region grew by 5% during 1QFY2013 and accounted for ~25% of IBG revenue. South Africa which accounts for ~10% of the IBG revenue registered a 12% yoy growth during the quarter. Caivil continued to be the market leader in the kids hair care market. The company was able to capitalize on the downtrading in the market due to its presence in the VFM segment through Black Chic. In Vietnam, X-Men a leading mens grooming brand, gained market share (currently enjoys 47% market share) due to the launch of a new campaign. X-Men for Boss targeted at a slightly older audience is also performing well. During the quarter, the male grooming range (shampoo and body wash) manufactured in Vietnam was launched under the brand Code 10 in Malaysia. The South East Asian business grew by 28% yoy during the quarter.

May 9, 2012

1Q13

Marico | 1QFY2013 Result Update

Kaya Skin Care Solutions

During the quarter, Kaya reported a turnover of `81cr. Same store sales in India and Middle East grew by 12% yoy. Kaya has been sustaining the top-line growth trend for the last seven quarters, recording a 29% yoy growth during the quarter. However, it made a loss of `7.3cr at the EBIT level which includes a one-time exceptional loss of `4.8cr on account of the proposed sale of Kaya Training Centre building.

Integration of Paras personal care business

Marico has completed the integration of Paras personal care business in the quarter. However, only `10cr worth of sales related to the Paras brands have been accounted since the numbers include sales of the last 9 days of the quarter only.

Investment arguments
Impressive volume growth across categories/strong pricing power: Marico has not witnessed any significant slowdown in volume growth despite the steep price hikes. Over the past few months, raw-material prices have been softening; so, we do not expect any steep price hikes further. Going ahead, we expect the company to post margin expansion over FY20121-4E due to the softening raw material prices. International business to bounce back going ahead: The international business now contributes ~24% to the companys top-line. Marico maintains its leadership position in different categories in different regions. We expect the companys international business to post better performance going ahead due to signs of improvement seen in the macro-environment in its international markets.

Outlook and valuation

Going ahead, we expect Marico to post a healthy growth in its domestic business aided by the strong brands. The recent acquisitions made by the company too are expected to contribute towards growth in future. At the current market price, the stock is trading at 22.5x FY2014E EPS. We believe the stock is fairly priced and hence, recommend a Neutral rating on the stock.

Exhibit 9: Change in estimates

Old estimates (` cr) Revenue OPM (%) EPS (`) FY13E 4,667 12.8 6.6 FY14E 5,427 12.9 8.1 New estimates FY13E 4,840 13.1 6.8 FY14E 5,643 13.1 8.5 % chg FY13E 3.7 25.8 2.8 FY14E 4.0 15.8 4.3

Source: Company, Angel Research

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Marico | 1QFY2013 Result Update

Exhibit 10: One-year forward P/E chart

35.0 30.0 25.0 20.0 (x) 15.0 10.0 5.0 May-09 May-10 May-11 May-12 Mar-09 Mar-10 Mar-11 Mar-12 Sep-08 Sep-09 Sep-10 Sep-11 Jan-09 Jan-10 Jan-11 Jan-12 Jul-08 Jul-09 Jul-10 Jul-11 Nov-08 Nov-09 Nov-10 Nov-11 Jul-12

Source: Company, Angel Research, Note: Blue line indicates 5-year average

Exhibit 11: Peer valuation

Company Asian Paints Britannia Colgate Dabur India Godrej Con GSK Con* HUL ITC Marico Nestle* TGBL Reco. Neutral Buy Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Neutral Mcap (` cr) 35,670 5,417 16,039 20,876 21,324 11,843 107,063 208,281 12,278 42,487 8,222 CMP (`) 3,719 453 1,179 120 620 2,816 498 268 191 4,407 133 TP (`) 633 Upside (%) 40 P/E (x) FY13E 30.7 21.9 34.1 26.8 27.2 27.0 34.9 28.9 28.1 38.4 21.2 FY14E 25.7 16.5 28.8 23.2 22.8 22.8 30.2 24.8 22.5 31.5 17.8 EV/Sales (x) FY13E 3.1 0.9 5.2 3.4 3.5 3.4 4.0 6.7 2.4 4.8 1.1 FY14E 2.6 0.8 4.5 2.9 3.0 2.8 3.5 5.8 2.0 4.1 0.9 RoE (%) FY13E 37.4 42.7 99.5 43.2 31.2 34.4 70.9 35.6 31.4 71.2 8.6 FY14E 35.3 44.3 94.1 41.4 30.0 32.8 59.8 35.0 29.7 60.3 9.5 Sales 17.0 17.4 12.8 15.3 20.1 16.8 15.5 16.9 18.6 16.5 9.7 CAGR # PAT 18.5 32.7 11.7 18.3 26.7 21.0 17.6 17.0 27.6 15.0 16.9

Source: Company, Angel Research; Note: #Denotes CAGR for FY2012-14E;*December year ending

Company Background
Marico is one of India's leading FMCG companies, offering products in the beauty and wellness segment. The company is present in over 25 countries across Asia and the Africa. The company offers products in the hair care, skin care and edible oils segments. Marico's product portfolio includes brands such as Parachute, Saffola, Hair & Care, Nihar, Mediker, Revive and Manjal. The company's brand Parachute is a household name in India.

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Marico | 1QFY2013 Result Update

Profit and loss statement (Consolidated)

Y/E March (` cr) Net Sales Total operating income % chg Total Expenditure Cost of Materials Advertising Exp Personnel Others EBITDA % chg (% of Net Sales) Dep.& Amortisation EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of PBT) Share in profit of Associates Recurring PBT % chg Prior Period & Extra Exp/(Inc.) PBT (reported) Tax (% of PBT) PAT (reported) Add: Share of earn. of asso. Less: Minority interest (MI) PAT after MI (reported) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg
previous year numbers.

FY09 2,388 2,388 25.4 2,084 1,278 243 166 398 304 23.4 12.7 36 268 24.5 11.2 36 12 5.0 0 245 28.8 15 230 41 16.7 189 (0) 189 204 32.3 8.5 3.3 3.3 32.3

FY10 2,661 2,661 11.4 2,286 1,262 351 193 480 375 23.4 14.1 60 315 17.5 11.8 26 18 5.9 0 308 25.7 10 298 64 20.9 234 2 232 241 18.5 9.1 4.0 3.9 18.5

FY11 3,126 3,127 17.5 2,719 1,618 346 230 524 407 8.6 13.0 71 337 6.8 10.8 41 30 9.2 0 326 5.8 (49) 375 85 26.1 290 5 285 236 (2.4) 7.5 3.9 3.9 (1.6)

FY12 4,008 4,008 28.2 3,524 2,099 449 307 669 485 19.0 12.1 73 412 22.4 10.3 42 33 8.1 0 402 23.5 2 401 78 19.4 322 5 317 319 35.4 8.0 5.2 5.2 34.4

FY13E 4,840 4,840 20.7 4,208 2,504 542 348 813 632 30.4 13.1 76 556 35.0 11.5 39 33 6.0 0 550 36.7 0 550 126 22.8 425 8 417 417 30.7 8.6 6.8 6.8 30.7

FY14E 5,643 5,643 16.6 4,906 2,908 632 412 954 737 16.6 13.1 78 659 18.4 11.7 37 60 8.8 0 681 23.8 0 681 154 22.6 527 8 520 520 24.6 9.2 8.5 8.5 24.6

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

May 9, 2012

Marico | 1QFY2013 Result Update

Exhibit 12: Balance Sheet (Consolidated)

Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Preference Capital Reserves& Surplus Shareholders Funds Minority Interest Total Loans Long term Provisions Other long term liabilities Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Long term loans and advances Deferred Tax Asset Current Assets Cash Loans & Advances Other Current liabilities Net Current Assets Mis. Exp. not written off Total Assets
previous year numbers.

FY09 61 393 454 0 374

FY10 61 593 654 13 446

FY11 61 854 915 21 722 45 1

FY12 61 1,082 1,143 25 762 42 1 1,973 706 403 303 40 554 296 123 22 1,278 159 218 902 644 634 1,973

FY13E 61 1,452 1,513 25 722 42 1 2,302 745 484 261 149 559 396 123 13 1,551 193 236 1,122 750 801 2,302

FY14E 61 1,925 1,986 25 682 42 1 2,735 783 567 217 157 564 596 123 2 1,946 402 236 1,308 869 1,077 2,735

828 414 203 210 58 128 12 64 670 90 130 450 314 355 828

1,112 468 242 226 113 146 83 62 897 111 190 596 414 483 1,112

1,704 618 337 281 33 541 89 99 30 1,160 221 161 779 529 632 1,704

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

May 9, 2012

Marico | 1QFY2013 Result Update

Exhibit 13: Cash flow Statement

Y/E March (` cr) Profit before tax Depreciation Change in Working Capital Interest / Dividend (Net) Direct taxes paid Others Cash Flow from Operations (Inc.)/ Dec. in Fixed Assets (Inc.)/ Dec. in Investments Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Interest / Dividend (Net) Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances
previous year numbers.

FY09 230 36 (75) 30 41 2 182 (95) (12) (107) 0 16 47 30 (60) 15 75 90

FY10 298 60 (135) 15 64 39 212 (149) (71) (219) 18 72 47 15 28 21 90 111

FY11 376 71 (82) 23 85 45 348 (465) (9) (474) 29 277 47 23 235 110 111 221

FY12 401 73 (45) 25 78 (73) 301 (108) (226) (335) 3 40 47 25 (29) (62) 221 159

FY13E 550 76 (140) 12 126 17 389 (153) (100) (253) 0 (41) 50 12 (103) 34 159 193

FY14E 681 78 (70) (16) 154 12 531 (52) (200) (252) 0 (40) 47 (16) (70) 209 193 402

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

May 9, 2012

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Marico | 1QFY2013 Result Update

Exhibit 14: Key Ratios

Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Returns (%) RoCE Angel RoIC (Pre-tax) RoE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) Net working capital (days)
previous year numbers.

FY09 57.5 48.4 25.6 0.3 5.1 39.5 14.5 3.3 3.3 3.9 0.7 7.4 35.7 49.6 53.0 4.9 52 17 42 41

FY10 48.5 38.5 17.7 0.3 4.6 32.1 10.8 4.0 3.9 4.9 0.7 10.7 32.5 43.0 43.6 4.6 61 21 46 51

FY11 49.3 32.8 12.8 0.3 3.9 29.3 7.4 3.9 3.9 5.8 0.7 14.9 24.9 39.4 36.5 3.5 70 21 53 43

FY12 36.7 30.0 10.2 0.4 3.0 25.4 6.4 5.2 5.2 6.3 0.7 18.6 23.0 39.0 30.8 3.3 66 17 52 39

FY13E 28.1 23.8 7.7 0.3 2.4 19.4 5.4 6.8 6.8 8.0 0.7 24.6 26.5 40.8 31.4 3.5 66 18 51 43

FY14E 22.5 19.6 5.9 0.3 2.0 16.3 4.5 8.5 8.5 9.7 0.7 32.3 26.6 40.7 29.7 3.5 66 18 51 41

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

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Marico | 1QFY2013 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 stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's 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 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Marico No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

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