MARICO - Technical Analysis with Chart Patterns & Indicators

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

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Technical Rating: 4.0

Technical Analysis Summary

• Trend: Consolidating near short-term averages
• Moving Averages: Price (₹721) is slightly above DMA 50 (₹718) and DMA 200 (₹696), indicating mild bullish bias
• RSI (50.6): Neutral zone, no strong momentum signal
• MACD (1.66): Weak bullish crossover, suggesting potential upside
• Bollinger Bands: Price near mid-band, indicating low volatility and range-bound movement
• Volume: Below average (12.1L vs 16.0L), showing reduced participation

Entry & Exit Zones

• Support: ₹705 – ₹715 (near DMA 50 and recent base)
• Resistance: ₹745 – ₹761 (recent swing highs)
• Optimal Entry: ₹710 – ₹715 on pullback with MACD confirmation
• Exit Zone: ₹745 – ₹760 if price stalls near resistance

Positive

• Strong quarterly PAT growth of 150% (₹777 Cr. vs ₹325 Cr.)
• High ROCE (42.8%) and ROE (36.5%) indicate operational efficiency
• Low debt-to-equity ratio (0.06)
• Positive FII sentiment (+0.59%)

Limitation

• High P/E of 46.6 vs industry average of 25.8
• PEG ratio of 4.93 suggests overvaluation
• Volume below average, indicating lack of strong conviction
• Negative DII sentiment (-0.73%)

Company Negative News

• Concerns over margin pressure due to raw material inflation

Company Positive News

• Strong performance in premium personal care and foods segments
• Expansion into rural markets and digital channels driving growth

Industry

• MARICO operates in the FMCG sector, focused on personal care and food products
• Peers include Dabur, Emami, and Hindustan Unilever

Conclusion

MARICO is currently consolidating near key moving averages with neutral momentum indicators. While fundamentals are strong, valuation concerns and low volume suggest a cautious approach. Traders may consider entry near ₹710 with targets around ₹760, watching for breakout confirmation.