MARICO - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | MARICO | Market Cap | 1,00,607 Cr. | Current Price | 775 ₹ | High / Low | 814 ₹ |
| Stock P/E | 51.9 | Book Value | 39.0 ₹ | Dividend Yield | 1.35 % | ROCE | 42.8 % |
| ROE | 36.5 % | Face Value | 1.00 ₹ | DMA 50 | 762 ₹ | DMA 200 | 738 ₹ |
| Chg in FII Hold | 0.06 % | Chg in DII Hold | -0.06 % | PAT Qtr | 441 Cr. | PAT Prev Qtr | 395 Cr. |
| RSI | 55.4 | MACD | 6.32 | Volume | 17,71,781 | Avg Vol 1Wk | 11,12,829 |
| Low price | 680 ₹ | High price | 814 ₹ | PEG Ratio | 5.49 | Debt to equity | 0.04 |
| 52w Index | 71.2 % | Qtr Profit Var | 19.5 % | EPS | 14.9 ₹ | Industry PE | 22.0 |
📊 Marico (MARICO) demonstrates strong efficiency but trades at premium valuations. With a market cap of ₹1,00,607 Cr. and current price of ₹775, the stock is above both its 50 DMA (₹762) and 200 DMA (₹738), reflecting technical strength. Efficiency metrics are excellent — ROE at 36.5% and ROCE at 42.8% — supported by quarterly PAT growth (+19.5%). However, valuation is stretched with a P/E of 51.9 compared to the industry average of 22.0, and PEG ratio at 5.49 highlights overvaluation relative to growth. EPS at ₹14.9 is modest, though dividend yield at 1.35% adds shareholder value. Debt-to-equity at 0.04 reflects strong financial stability. Institutional flows are mixed, with FIIs slightly positive (+0.06%) and DIIs reducing (-0.06%).
💡 Entry Zone: ₹720–₹740 (near 200 DMA support)
📈 Long-Term Holding: Attractive for long-term investors due to strong efficiency and brand strength, but accumulation should be cautious given stretched valuations. Suitable for holding with a 3–5 year horizon.
✅ Positive
- Exceptional ROE (36.5%) and ROCE (42.8%) highlight efficiency
- Strong quarterly PAT growth (+19.5%)
- Debt-to-equity ratio (0.04) reflects financial stability
- Dividend yield of 1.35% adds investor returns
- Stock trading above DMA 50 and DMA 200, showing technical strength
⚠️ Limitation
- High valuation (P/E 51.9 vs industry 22.0)
- PEG ratio (5.49) indicates poor growth-adjusted valuation
- EPS (₹14.9) modest relative to valuation
- DIIs reduced holdings (-0.06%), showing weaker domestic support
📉 Company Negative News
- Valuation stretched compared to sector peers
- Modest EPS despite premium pricing
📈 Company Positive News
- PAT improved significantly (₹395 Cr → ₹441 Cr)
- FIIs marginally increased holdings (+0.06%)
- Strong efficiency metrics support long-term growth
🏭 Industry
- FMCG sector trades at lower P/E (22.0), making Marico relatively expensive
- Sector outlook remains positive with demand for consumer staples and personal care products
🔎 Conclusion
Marico is fundamentally strong with excellent efficiency and financial stability, but valuations are stretched. Entry near ₹720–₹740 offers a safer accumulation zone. Long-term investors can hold with confidence, though returns may be capped unless earnings growth accelerates to justify premium valuations.