MARICO - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.2

Here’s a deep dive into Marico's fundamentals and investment outlook

🧮 Core Financials

Profitability

ROE (41.3%) and ROCE (45.2%) are exceptionally strong, showcasing outstanding capital efficiency.

EPS at ₹12.6 is modest given its high market cap, but consistent.

Quarterly Performance

PAT down from ₹399 Cr. to ₹343 Cr., yet quarterly profit variation is +7.86%, indicating resilience.

Debt Position: Debt-to-equity at 0.14 — virtually debt-free, which enhances stability and agility.

📉 Valuation Overview

Metric Value Comment

P/E 56.0 Expensive vs. industry average (30.2)

P/B Ratio ~22.7 Very steep, reflects high investor expectations

PEG Ratio 5.82 Indicates premium valuation not backed by proportional growth

Dividend Yield 1.50% Reasonable — adds passive income for long-term holders

Verdict: Marico is overvalued based on standard metrics, but priced for its brand strength, sector leadership, and stable margins.

🏬 Business Model & Strategic Edge

FMCG giant with presence in personal care, hair oil, health foods.

Diverse portfolio spanning urban & rural markets — de-risks performance.

Brands like Parachute, Saffola, and Livon offer lasting consumer traction.

Digital strategy and innovation-led growth provide long-term durability.

📊 Technical Indicators

RSI: 39.3 — nearing oversold zone, may attract buyers soon.

MACD: -2.77 — bearish momentum, caution warranted.

DMA Comparison

Current price below 50-DMA (₹710), but above 200-DMA (₹675) — mixed trend signals.

🎯 Entry Zone & Investment Guidance

Entry Zone: ₹675–₹690 — near 200-DMA and RSI support levels.

Holding Guidance

Excellent company with superior return metrics and brand longevity.

Long-term holding makes sense for low-volatility portfolios.

Best bought in dips or gradual accumulation to counter valuation risks.

Would you like a comparative breakdown against peers like Dabur or Emami for more context? That could sharpen your conviction.

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