MARICO - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | MARICO | Market Cap | 96,206 Cr. | Current Price | 741 ₹ | High / Low | 814 ₹ |
| Stock P/E | 49.6 | Book Value | 39.0 ₹ | Dividend Yield | 1.42 % | ROCE | 42.8 % |
| ROE | 36.5 % | Face Value | 1.00 ₹ | DMA 50 | 762 ₹ | DMA 200 | 731 ₹ |
| Chg in FII Hold | -0.19 % | Chg in DII Hold | 0.35 % | PAT Qtr | 441 Cr. | PAT Prev Qtr | 395 Cr. |
| RSI | 38.2 | MACD | -4.60 | Volume | 13,34,484 | Avg Vol 1Wk | 17,11,085 |
| Low price | 616 ₹ | High price | 814 ₹ | PEG Ratio | 5.25 | Debt to equity | 0.04 |
| 52w Index | 63.5 % | Qtr Profit Var | 19.5 % | EPS | 14.9 ₹ | Industry PE | 21.1 |
📊 Marico (MARICO) shows strong fundamentals but weak technicals for swing trading. The RSI at 38.2 indicates oversold conditions, suggesting a potential rebound. However, the MACD (-4.60) reflects bearish momentum, and the stock is trading below its 50 DMA (762 ₹) but slightly above 200 DMA (731 ₹), showing mixed signals. With a high P/E of 49.6 compared to the industry average of 21.1, the stock appears overvalued. Overall, this is a moderately good swing trade candidate with cautious entry.
💡 Optimal Entry Price: Around 730–745 ₹ (near support zone and 200 DMA).
📈 Exit Strategy (if already holding): Consider exiting near 770–790 ₹ (close to 50 DMA resistance) unless momentum strengthens further.
✅ Positive
- Quarterly PAT improved (441 Cr. vs 395 Cr.).
- EPS of 14.9 ₹ reflects earnings consistency.
- ROCE (42.8%) and ROE (36.5%) are excellent, showing strong efficiency.
- DII holdings increased (+0.35%), showing domestic investor support.
- Dividend yield of 1.42% adds investor appeal.
⚠️ Limitation
- Stock trading below 50 DMA, showing short-term weakness.
- Bearish technical indicators (MACD negative, RSI oversold).
- High P/E (49.6) compared to industry average (21.1).
- PEG ratio of 5.25 suggests expensive valuation relative to growth.
📉 Company Negative News
- FII holdings decreased (-0.19%), showing reduced foreign investor confidence.
- Stock has dropped from 52-week high (814 ₹ to 741 ₹).
📈 Company Positive News
- Strong quarterly profit growth (19.5% variation).
- DII support increased, balancing foreign outflows.
- Stock trading above 200 DMA, showing long-term support.
🏭 Industry
- Industry PE is 21.1, much lower than Marico’s 49.6, suggesting peers are more reasonably valued.
- FMCG sector remains defensive with steady demand but faces margin pressures from raw material costs.
🔎 Conclusion
Marico is a moderately good swing trade candidate with strong fundamentals but high valuation and weak technicals. Entry near 730–745 ₹ offers a favorable risk-reward setup, while exits near 770–790 ₹ capture upside potential. Declining foreign investor confidence and expensive valuation warrant caution, but strong efficiency and profit growth make this suitable for tactical short-term trades.