MARICO - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 4.1

📈 Optimal Entry Price: ₹705–₹715 (near 50 DMA and RSI support)

📉 Exit Strategy (if holding): ₹755–₹760 (near 52-week high and resistance)

🔷 Positive

• 📊 Quarterly PAT surged 150%: From ₹325 Cr. to ₹777 Cr., indicating strong earnings momentum.
• 📈 ROCE (42.8%) and ROE (36.5%): Reflect excellent capital efficiency and profitability.
• 📈 MACD at 1.20: Indicates bullish crossover and potential upward momentum.
• 📉 Debt-to-equity ratio of 0.06: Shows strong financial health with minimal leverage.
• 📈 FII holding increased by 0.59%: Reflects growing foreign investor confidence.

⚠️ Limitation

• 📉 High P/E of 46.6: Significantly above industry average (25.9), suggesting overvaluation.
• 📉 PEG ratio of 4.93: Indicates expensive valuation relative to growth.
• 📉 Volume below 1-week average: May signal weakening short-term interest.
• 📉 DII holding dropped by 0.73%: Slight decline in domestic institutional sentiment.

📉 Company Negative News

• 📉 Q1FY26 operating margin declined to 20.1% from 23.7% YoY due to higher input costs

  MoneyControl

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📈 Company Positive News

• 📊 Q2FY26 revenue growth met expectations, driven by strong performance in the Parachute and Saffola segments

  ndtvprofit.com

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• 📈 Brokerages like Nomura and Nuvama maintained “Buy” ratings with positive outlooks

  ndtvprofit.com

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• 📈 Marico gained 140 bps market share in value-added hair oils on a MAT basis

  MoneyControl

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🛍️ Industry

• 🧴 Operates in the FMCG sector, which is defensive and benefits from consistent consumer demand.
• 📈 Industry P/E of 25.9 suggests Marico trades at a premium, likely due to brand strength and profitability.

🧾 Conclusion

• ✅ Marico is a solid swing trade candidate with strong fundamentals and improving technicals.
• 📌 Entry near ₹705–₹715 offers a favorable setup with support from DMA and RSI levels.
• 🚪 If already holding, consider exiting near ₹755–₹760, aligning with resistance and 52-week high.

Sources

Marico Q2 update and investor meet

The Economic Times

Q1 margin pressure and share movement

MoneyControl

Brokerage reactions to Q2 performance

ndtvprofit.com

I can also compare Marico with another FMCG stock like Dabur or HUL to help refine your swing strategy.