MARICO - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | MARICO | Market Cap | 94,886 Cr. | Current Price | 729 ₹ | High / Low | 780 ₹ |
| Stock P/E | 49.0 | Book Value | 39.0 ₹ | Dividend Yield | 1.44 % | ROCE | 42.8 % |
| ROE | 36.5 % | Face Value | 1.00 ₹ | DMA 50 | 740 ₹ | DMA 200 | 716 ₹ |
| Chg in FII Hold | -0.19 % | Chg in DII Hold | 0.35 % | PAT Qtr | 441 Cr. | PAT Prev Qtr | 395 Cr. |
| RSI | 44.5 | MACD | -5.12 | Volume | 32,07,290 | Avg Vol 1Wk | 30,46,912 |
| Low price | 578 ₹ | High price | 780 ₹ | PEG Ratio | 5.18 | Debt to equity | 0.04 |
| 52w Index | 74.9 % | Qtr Profit Var | 19.5 % | EPS | 14.9 ₹ | Industry PE | 23.2 |
📊 Marico shows a moderately positive outlook for swing trading. The stock trades at ₹729, slightly below its 50 DMA (₹740) but above its 200 DMA (₹716), reflecting medium-term support with short-term weakness. RSI at 44.5 suggests nearing oversold territory, while MACD at -5.12 indicates mild bearish momentum. Valuation is stretched with a P/E of 49.0 compared to industry average of 23.2, and PEG ratio of 5.18 suggests expensive growth. However, strong ROE (36.5%) and ROCE (42.8%) highlight operational efficiency, while sequential PAT growth and dividend yield of 1.44% add investor confidence.
✅ Optimal Entry Price: Around ₹715–725 (near support zone, slightly below current price).
🚪 Exit Strategy (if already holding): Consider exit near ₹760–775 (resistance zone close to recent high). If price falls below ₹710, apply stop-loss to protect capital.
Positive
- 📈 Strong ROE (36.5%) and ROCE (42.8%).
- 💰 Dividend yield of 1.44% adds investor appeal.
- 📊 EPS of ₹14.9 supports valuation strength.
- 📈 PAT improved sequentially (₹441 Cr. vs ₹395 Cr.).
- 🏦 DII holdings increased (+0.35%).
Limitation
- ⚠️ High P/E (49.0 vs industry 23.2).
- 📉 PEG ratio (5.18) indicates expensive growth.
- 📉 Trading below 50 DMA, showing short-term weakness.
- 📉 RSI at 44.5 suggests limited momentum.
Company Negative News
- 📉 FII holdings decreased (-0.19%).
- ⚠️ Valuation premium compared to peers.
Company Positive News
- 📈 PAT growth (+19.5% QoQ) shows operational strength.
- 🏦 DII accumulation signals domestic investor confidence.
Industry
- 🏭 FMCG sector average PE is 23.2, Marico trades at a premium (49.0).
- 📊 Sector demand remains resilient, supported by consumer staples growth.
Conclusion
⚖️ Marico is a moderately suitable candidate for swing trading. Entry near ₹715–725 offers favorable risk-reward, while exits should be targeted near ₹760–775. Strong fundamentals and dividend yield provide positives, but high valuation and weak technicals limit short-term upside. Traders should remain cautious and apply strict stop-loss discipline below ₹710.