Marico vs Adani Wilmar Which Outperforms?

Marico and Adani Wilmar are two prominent companies in the FMCG sector of the Indian stock market. Marico, known for its popular brands such as Parachute, Saffola, and Livon, has a strong presence in the edible oils and personal care products segment. On the other hand, Adani Wilmar is a joint venture between the Adani Group and Wilmar International, focusing on edible oils and food products. Both companies have shown steady growth and profitability, making them attractive options for investors looking to diversify their portfolios in the FMCG sector.

Marico or Adani Wilmar?

When comparing Marico and Adani Wilmar, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Marico and Adani Wilmar.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Marico has a dividend yield of 1.03%, while Adani Wilmar has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Marico reports a 5-year dividend growth of 10.76% year and a payout ratio of 0.00%. On the other hand, Adani Wilmar reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Marico P/E ratio at 51.78 and Adani Wilmar's P/E ratio at 41.46. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Marico P/B ratio is 17.66 while Adani Wilmar's P/B ratio is 4.55.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Marico has seen a 5-year revenue growth of 0.32%, while Adani Wilmar's is 0.79%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Marico's ROE at 36.80% and Adani Wilmar's ROE at 11.71%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹631.00 for Marico and ₹309.10 for Adani Wilmar. Over the past year, Marico's prices ranged from ₹486.30 to ₹719.85, with a yearly change of 48.03%. Adani Wilmar's prices fluctuated between ₹279.00 and ₹408.95, with a yearly change of 46.58%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.