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MARICO - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.2

Last Updated Time : 02 Feb 26, 09:51 am

Technical Rating: 3.2

Stock Code MARICO Market Cap 93,457 Cr. Current Price 721 ₹ High / Low 780 ₹
Stock P/E 48.2 Book Value 39.0 ₹ Dividend Yield 1.46 % ROCE 42.8 %
ROE 36.5 % Face Value 1.00 ₹ DMA 50 741 ₹ 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 35.5 MACD -4.04 Volume 5,94,270 Avg Vol 1Wk 29,36,121
Low price 578 ₹ High price 780 ₹ PEG Ratio 5.10 Debt to equity 0.04
52w Index 70.6 % Qtr Profit Var 19.5 % EPS 14.9 ₹ Industry PE 23.5

📊 Chart Patterns & Trend: Marico is trading at 721 ₹, below its 50 DMA (741 ₹) but slightly above its 200 DMA (716 ₹). This indicates a bearish consolidation with short-term weakness but medium-term support. The stock is closer to its 52-week high (780 ₹) than its low (578 ₹), reflecting moderate sentiment.

📈 RSI: At 35.5, RSI is near oversold territory, suggesting potential for a rebound but still weak momentum.

📉 MACD: Negative at -4.04, confirming bearish undertone and lack of strong upward crossover signals.

📊 Bollinger Bands: Price is near the lower band, indicating oversold conditions and possible mean reversion.

📊 Volume Trends: Current volume (5,94,270) is significantly lower than average weekly volume (29,36,121), showing weak participation and lack of conviction in recent moves.

🎯 Entry Zone: 710–720 ₹ (near 200 DMA support).

🎯 Exit Zone: 750–770 ₹ (near 50 DMA resistance and upper consolidation band).


Positive

  • Market cap of 93,457 Cr. reflects strong presence in FMCG sector.
  • ROCE (42.8%) and ROE (36.5%) highlight excellent capital efficiency.
  • Dividend yield of 1.46% provides income return.
  • Quarterly PAT improved to 441 Cr. from 395 Cr., showing sequential growth.
  • DII holdings increased by 0.35%, indicating domestic institutional confidence.

Limitation

  • Stock trading below 50 DMA, showing weak short-term momentum.
  • High P/E of 48.2 compared to industry PE of 23.5, making valuation expensive.
  • PEG ratio of 5.10 indicates poor earnings growth relative to valuation.
  • Dividend yield is modest compared to valuation multiples.
  • Weak trading volumes reduce conviction in price action.

Company Negative News

  • FII holdings decreased (-0.19%), showing reduced foreign investor confidence.
  • Stock trading near oversold RSI levels, reflecting weak sentiment.

Company Positive News

  • Quarterly PAT growth of 19.5% indicates strong operational improvement.
  • DII stake increase reflects domestic investor confidence.
  • Strong ROE and ROCE highlight efficient capital utilization.

Industry

  • FMCG sector trading at industry PE of 23.5, highlighting Marico’s premium valuation.
  • Sector outlook remains defensive with steady demand, but valuations are stretched.

Conclusion

⚖️ Marico is in a bearish consolidation phase with oversold RSI and negative MACD. Entry near 710–720 ₹ offers margin of safety, while exits around 750–770 ₹ provide profit-taking opportunities. Long-term investors should be cautious due to high valuations and modest EPS growth, while short-term traders may exploit oversold conditions for swing trades.

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