๐๐ผ๐ป๐ด ๐ง๐ฒ๐ฟ๐บ ยฎโข
Bharti Hexacom Limited 1050-1125 Expected level 1300 Support 900
1800๐ฅ๐ฅLong term level hit ๐
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Marico Limited company details report
Marico Limited is one of Indiaโs leading consumer products companies in the domestic hair and wellness market. It is present across varied categories of hair care, skin care, edible oils, health foods, and male grooming, with a vast portfolio of brands such as Parachute, Saffola, Hair & Care, Nihar, Livon, Kaya Youth, and Coco Soul. Currently, it has presence in 25 countries across emerging markets of Asia & Africa, including Middle East, Bangladesh, Vietnam, Egypt and South Africa, constituting ~25% of the total revenue. The company has a retail reach of ~5.8 million outlets and direct reach of ~1 million outlets in the domestic market. The company has 8 factories that are strategically located in India. Marico is a leading player in the domestic hair and wellness market with a leadership position in categories such as coconut oils, value-added hair oils, and Parachute Rigids within coconut oils. The company has a three-pronged strategy of driving growth through key categories, innovations/entrance into the niche category, and scaling up its presence in international geographies. In recent times, the company has entered niche categories such as male grooming, premium hair nourishment and healthy foods.
Marico Limited is one of Indiaโs leading consumer products companies in the domestic hair and wellness market. It is present across varied categories of hair care, skin care, edible oils, health foods, and male grooming, with a vast portfolio of brands such as Parachute, Saffola, Hair & Care, Nihar, Livon, Kaya Youth, and Coco Soul. Currently, it has presence in 25 countries across emerging markets of Asia & Africa, including Middle East, Bangladesh, Vietnam, Egypt and South Africa, constituting ~25% of the total revenue. The company has a retail reach of ~5.8 million outlets and direct reach of ~1 million outlets in the domestic market. The company has 8 factories that are strategically located in India. Marico is a leading player in the domestic hair and wellness market with a leadership position in categories such as coconut oils, value-added hair oils, and Parachute Rigids within coconut oils. The company has a three-pronged strategy of driving growth through key categories, innovations/entrance into the niche category, and scaling up its presence in international geographies. In recent times, the company has entered niche categories such as male grooming, premium hair nourishment and healthy foods.
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Coconut Oils - Parachute Coconut Oil continues to be the dominant market leader in the branded coconut oil market, while ~30% of the coconut oil market is still unbranded, presenting an attractive opportunity to capture a significant share of the transitioning market, sustaining/improving its growth trajectory. Saffola Franchise - The product range includes Saffola oils, Saffola Oats, Saffola Mayonnaise, Saffola Peanut Butter, Saffola Soya chunks and many more in the health & nutrition category. VAHO- Within the category, mid & premium segments continued to fare better than the mass segment, Nihar Shanti Amla had a sluggish year, Parachute Advanced Jasmine continued to gain market share, Hair & Care continued to drive penetration of the brand, Parachute Advansed Aloe Vera witnessed penetration gains in key markets. Premium Personal Care & Digital First Portfolio - Beardo sustained its impressive growth trajectory. Just herbs performed robustly in FY24, coupled with expansion in its wide-ranging portfolio through the launch of a range of natural make-up and pure fragrances, PureSense offers skincare, mood-lifting fragrances and bath products and Coco Soul has created 100% ayurvedic and vegan products, using natural towards skincare, hair care and health concerns.
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Bangladesh delivered CC growth of ~12% in FY25, led by new extensions. The business has steadily reduced its dependence on the Coconut Oil portfolio. The mediumterm outlook for Bangladesh remains strong. โข Vietnam posted ~4% CC growth during the year, impacted by sluggishness in core categories. Others* โข *Others includes MENA (Middle east & North Africa), South Africa and NCD (New Country Development) & Exports. MENA region posted ~36% CC growth, led by strong traction across markets. The Middle East and Egypt businesses grew 26% and 73%, respectively in CC terms, led by a well-rounded performance across portfolios and successful new product launches in both geographies. South Africa delivered a CC growth of ~19%, driven by strong performance in the Health Care and Hair Care segments. While the NCD & Export segment grew by ~16%.
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#SALES #GROWTH
Sales grew by ~12% YoY to โน10,831 cr in FY25. Geographically, India business grew by ~14% YoY, aided by price interventions in core categories in response to a sharp rise in input costs, with an underlying volume growth of ~5%. While the international business was up by ~8% YoY in INR terms and ~14% in CC terms. The international business has navigated headwinds, including macroeconomic volatility and currency devaluation in select markets. While the Bangladesh and Vietnam businesses remained strong, the robust momentum in the MENA (Midde East and North Africa) and South Africa businesses has strengthened the revenue construct of the overall international business.
Sales grew by ~12% YoY to โน10,831 cr in FY25. Geographically, India business grew by ~14% YoY, aided by price interventions in core categories in response to a sharp rise in input costs, with an underlying volume growth of ~5%. While the international business was up by ~8% YoY in INR terms and ~14% in CC terms. The international business has navigated headwinds, including macroeconomic volatility and currency devaluation in select markets. While the Bangladesh and Vietnam businesses remained strong, the robust momentum in the MENA (Midde East and North Africa) and South Africa businesses has strengthened the revenue construct of the overall international business.
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#EBITDA #GROWTH
In FY25, EBITDA grew by ~6% YoY to โน2,139 cr, despite rising input prices. The growth was further supported by increase in gross profits. During the period, it witnessed a rise in employee benefit expenses and A&P spends (up by ~18% YoY). Major expenses for the company constituted cost of materials consumed ~42% (mainly constitutes raw materials and packing materials) and other expenses ~23% (majorly towards advertisement & marketing expense). Across different FMCG categories, the uptrend in rural growth was supported by a healthy monsoon season and continued government spendings. While urban consumption trends observed a mixed bag, with sentiments hovering around upper-middle and affluent segments. Retail and food inflation were at an elevated level.
In FY25, EBITDA grew by ~6% YoY to โน2,139 cr, despite rising input prices. The growth was further supported by increase in gross profits. During the period, it witnessed a rise in employee benefit expenses and A&P spends (up by ~18% YoY). Major expenses for the company constituted cost of materials consumed ~42% (mainly constitutes raw materials and packing materials) and other expenses ~23% (majorly towards advertisement & marketing expense). Across different FMCG categories, the uptrend in rural growth was supported by a healthy monsoon season and continued government spendings. While urban consumption trends observed a mixed bag, with sentiments hovering around upper-middle and affluent segments. Retail and food inflation were at an elevated level.
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#EBITDA #MARGIN
On the raw material front, copra prices were up by ~48% YoY in FY25. Also, Rice Bran Oil (RBO) prices were firm sequentially and up by ~25% YoY in FY25. Crude oil derivatives remained rangebound during the period. In FY25, EBITDA margin contracted by ~124 bps YoY to 19.7%, led by a contraction in the gross margins, owing to the rising trend in input prices like copra and vegetable oil prices, partly offset by pricing interventions across key portfolio. EBIT margin, for the domestic business contracted by ~309 bps YoY to 15.6% (v/s 18.7% in FY24), while that of international business contracted by ~196 bps YoY to 24% (v/s 26% in FY24).
On the raw material front, copra prices were up by ~48% YoY in FY25. Also, Rice Bran Oil (RBO) prices were firm sequentially and up by ~25% YoY in FY25. Crude oil derivatives remained rangebound during the period. In FY25, EBITDA margin contracted by ~124 bps YoY to 19.7%, led by a contraction in the gross margins, owing to the rising trend in input prices like copra and vegetable oil prices, partly offset by pricing interventions across key portfolio. EBIT margin, for the domestic business contracted by ~309 bps YoY to 15.6% (v/s 18.7% in FY24), while that of international business contracted by ~196 bps YoY to 24% (v/s 26% in FY24).
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#ROCE
In FY25, ROCE for the company increased to 50.62%. Over the years, ROCE for the company has been on an upward trend. The company drove profitable operations and enjoyed a comfortable net cash surplus during the year which stood at โน1,830 cr. The company is actively exploring opportunities to optimize borrowing costs and maximize yield on investments while maintaining conservative guardrails on safety, liquidity and returns
In FY25, ROCE for the company increased to 50.62%. Over the years, ROCE for the company has been on an upward trend. The company drove profitable operations and enjoyed a comfortable net cash surplus during the year which stood at โน1,830 cr. The company is actively exploring opportunities to optimize borrowing costs and maximize yield on investments while maintaining conservative guardrails on safety, liquidity and returns
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#ROE
In FY25, ROE for the company witnessed an increase to 43.36%, owing to a rise in net profit. With sustained investments guided towards expanding and developing newer categories, the company is foraying into multiple offerings across its existing business portfolio, that will help in improving the profitability and maintaining strong return ratios of the company going ahead
In FY25, ROE for the company witnessed an increase to 43.36%, owing to a rise in net profit. With sustained investments guided towards expanding and developing newer categories, the company is foraying into multiple offerings across its existing business portfolio, that will help in improving the profitability and maintaining strong return ratios of the company going ahead
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#Company #POTENTIAL
FMCG sector - FMCG sector, in FY25, continued witnessing steady demand trends, supported by a gradual recovery in rural sentiment and stable urban consumptions. The uptrend in rural growth was supported by a healthy monsoon season and continued government spendings. โข Urban/Rural- While urban consumption trends observed a mixed bag, with sentiments hovering around upper-middle and affluent segments. Retail and food inflation were at an elevated level. โข Rising Wellness - There is a growing awareness amongst people regarding their wellbeing. As people realize that good health needs proactive attention, they are rapidly growing closer to healthy eating habits. Organic, superfood-based, nutritious, natural products are gaining favour amongst the masses, no matter what the category. โข Digitization โข โข Inflation- Increasing smartphone and internet penetration is helping people in rural areas easily access online shopping. It is increasingly becoming a priority for FMCG brands as customers interact with brands across multiple online and offline channels. Companies also get access to valuable data from these sources, including various social media platforms, web and mobile applications. Besides, it also allows FMCG brands to engage better with their customers and convert one-time buyers into repeat customers. E-commerce - Going forward, channel mix will shift dramatically in favour of E-commerce. The growth in the same have aided the sector to drive strong growth in the urban sector. FMCG companies are focusing on digitization for enabling smooth functioning of its supply and distribution channel.- FY25 witnessed a slowdown in consumption, led by impacted rural demand due to high food inflation and seasonality
FMCG sector - FMCG sector, in FY25, continued witnessing steady demand trends, supported by a gradual recovery in rural sentiment and stable urban consumptions. The uptrend in rural growth was supported by a healthy monsoon season and continued government spendings. โข Urban/Rural- While urban consumption trends observed a mixed bag, with sentiments hovering around upper-middle and affluent segments. Retail and food inflation were at an elevated level. โข Rising Wellness - There is a growing awareness amongst people regarding their wellbeing. As people realize that good health needs proactive attention, they are rapidly growing closer to healthy eating habits. Organic, superfood-based, nutritious, natural products are gaining favour amongst the masses, no matter what the category. โข Digitization โข โข Inflation- Increasing smartphone and internet penetration is helping people in rural areas easily access online shopping. It is increasingly becoming a priority for FMCG brands as customers interact with brands across multiple online and offline channels. Companies also get access to valuable data from these sources, including various social media platforms, web and mobile applications. Besides, it also allows FMCG brands to engage better with their customers and convert one-time buyers into repeat customers. E-commerce - Going forward, channel mix will shift dramatically in favour of E-commerce. The growth in the same have aided the sector to drive strong growth in the urban sector. FMCG companies are focusing on digitization for enabling smooth functioning of its supply and distribution channel.- FY25 witnessed a slowdown in consumption, led by impacted rural demand due to high food inflation and seasonality
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#COMPANY #OUTLOOK
โข In the medium term, they aim to deliver double-digit revenue growth through consistent outperformance across categories and market share gains in the domestic core portfolios, accelerated growth in the Foods & Premium Personal Care and double-digit constant currency growth in the international business. โข Copra prices has inched up in line with expectations and continued to exhibit an upward bias. RBO has been stable and is expected to be range bound in the near term. LLP and HDPE (High Density Polyethylene) hardened sequentially and may trend upwards, considering recent bullishness in crude oil prices. Gross margin is anticipated to grow owing to moderation in raw material prices and a favorable portfolio mix. โข The operating margin is envisaged to inch up over the medium term, supported by leverage benefits and premiumization of the portfolios across both domestic and international markets. โข The company expects gradual improvements in the core categories, on the back of moderating trends in retail and food inflation, followed by a healthy monsoon season. โข Amongst channels, modern trade (MT) and e-commerce (including quick commerce), continued to gain traction, while general trade (GT) remained under pressure due to evolving and inter-channel conflicts and customer shifts. โข The company expects gradual improving trends in VAHO on the back of ATL (above the line) investments, brand activations and gradually improving trends in rural consumption sentiment. โข The company continued to maintain its aspiration of achieving double-digit EBITDA margin in the Digital-first portfolio by FY27.
โข In the medium term, they aim to deliver double-digit revenue growth through consistent outperformance across categories and market share gains in the domestic core portfolios, accelerated growth in the Foods & Premium Personal Care and double-digit constant currency growth in the international business. โข Copra prices has inched up in line with expectations and continued to exhibit an upward bias. RBO has been stable and is expected to be range bound in the near term. LLP and HDPE (High Density Polyethylene) hardened sequentially and may trend upwards, considering recent bullishness in crude oil prices. Gross margin is anticipated to grow owing to moderation in raw material prices and a favorable portfolio mix. โข The operating margin is envisaged to inch up over the medium term, supported by leverage benefits and premiumization of the portfolios across both domestic and international markets. โข The company expects gradual improvements in the core categories, on the back of moderating trends in retail and food inflation, followed by a healthy monsoon season. โข Amongst channels, modern trade (MT) and e-commerce (including quick commerce), continued to gain traction, while general trade (GT) remained under pressure due to evolving and inter-channel conflicts and customer shifts. โข The company expects gradual improving trends in VAHO on the back of ATL (above the line) investments, brand activations and gradually improving trends in rural consumption sentiment. โข The company continued to maintain its aspiration of achieving double-digit EBITDA margin in the Digital-first portfolio by FY27.
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Marico 590-690
Expected level 850
Support 498
Expected level 850
Support 498
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Asahi India Glass Limited Company Details Report
Asahi India Glass Limited is a prominent manufacturer of value-added glass products and has become an integrated glass solutions provider in India. Spanning the entire glass value chain, AIS is engaged in the production of automotive glass, float glass, glass processing, fabrication, and installation. AIS was established as a joint venture between the Labroo Family, AGC Inc., Japan and Maruti Suzuki India Limited, beginning operations in 1987. AIS entered the float glass segment after acquiring Float Glass India Limited with its manufacturing facility at Taloja (Maharashtra) in 2001. The company majorly caters to three business units which include: Automotive Glass, Architectural Glass and Consumer Glass. AIS auto glass products and solutions have attained 75% market share in the passenger car market segment and the product range encompasses laminated glass for car windshields, tempered glass for side windows, backlites, sunroofs and windshields, along with sub-assemblies and a wide array of value-added glass products. The company has ~3,700 stock keeping units under this segment. Its client base includes Maruti Suzuki India, Kia, Hyundai, Toyota, Mahindra & Mahindra, Toyota, Honda, Ashok Leyland, Daimler, Force Motors, Bajaj Auto, Volvo to name a few. It is a sunroof system supplier to Webasto, Aisin, and Golde Group. Additionally, the company also supplies auto glass in white goods segment i.e., refrigerator shelf glass and washing machine lid glass, etc. In the architectural glass industry, its offering include specialised value-added glass products which includes float glass, high performance coated glass, mirror, back painted glass, decorative glass, processed glass, and other value-added glass products. These offerings are designed for both exterior and interior use in modern architecture. In this category the company has a market share of ~16% and has 1,372 stockists across India. Through consumer glass segment, for B2C (business to consumer) segment, the company provides customised solutions in the automotive and architectural glass segments. It leverages its expertise in B2B (business to business) segments and product innovation to provide interface to its customers with in-depth consultancy services. It has presence across 65 cities in India and addresses over 101 dealerships & workshops. Within the automotive segment, OEMs account for over ~75% of AISโ revenue, while the replacement market contributes ~25%. In this space, AIS plays a significant role through its network of distributors and dealers, and also operates the well-known Windshield Experts chain of standalone repair and replacement workshops. As on 31st March 2024, total installed capacity stood at 4.5 cr pieces for tempered glass, 1,280 TPD (tonne per day) float glass and 0.85 cr pieces for laminated glass.
Asahi India Glass Limited is a prominent manufacturer of value-added glass products and has become an integrated glass solutions provider in India. Spanning the entire glass value chain, AIS is engaged in the production of automotive glass, float glass, glass processing, fabrication, and installation. AIS was established as a joint venture between the Labroo Family, AGC Inc., Japan and Maruti Suzuki India Limited, beginning operations in 1987. AIS entered the float glass segment after acquiring Float Glass India Limited with its manufacturing facility at Taloja (Maharashtra) in 2001. The company majorly caters to three business units which include: Automotive Glass, Architectural Glass and Consumer Glass. AIS auto glass products and solutions have attained 75% market share in the passenger car market segment and the product range encompasses laminated glass for car windshields, tempered glass for side windows, backlites, sunroofs and windshields, along with sub-assemblies and a wide array of value-added glass products. The company has ~3,700 stock keeping units under this segment. Its client base includes Maruti Suzuki India, Kia, Hyundai, Toyota, Mahindra & Mahindra, Toyota, Honda, Ashok Leyland, Daimler, Force Motors, Bajaj Auto, Volvo to name a few. It is a sunroof system supplier to Webasto, Aisin, and Golde Group. Additionally, the company also supplies auto glass in white goods segment i.e., refrigerator shelf glass and washing machine lid glass, etc. In the architectural glass industry, its offering include specialised value-added glass products which includes float glass, high performance coated glass, mirror, back painted glass, decorative glass, processed glass, and other value-added glass products. These offerings are designed for both exterior and interior use in modern architecture. In this category the company has a market share of ~16% and has 1,372 stockists across India. Through consumer glass segment, for B2C (business to consumer) segment, the company provides customised solutions in the automotive and architectural glass segments. It leverages its expertise in B2B (business to business) segments and product innovation to provide interface to its customers with in-depth consultancy services. It has presence across 65 cities in India and addresses over 101 dealerships & workshops. Within the automotive segment, OEMs account for over ~75% of AISโ revenue, while the replacement market contributes ~25%. In this space, AIS plays a significant role through its network of distributors and dealers, and also operates the well-known Windshield Experts chain of standalone repair and replacement workshops. As on 31st March 2024, total installed capacity stood at 4.5 cr pieces for tempered glass, 1,280 TPD (tonne per day) float glass and 0.85 cr pieces for laminated glass.
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