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MARICO - Technical Analysis with Chart Patterns & Indicators

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Rating: 4

Last Updated Time : 03 May 26, 11:24 am

Technical Rating: 4.0

Stock Code MARICO Market Cap 1,00,607 Cr. Current Price 775 ₹ High / Low 814 ₹
Stock P/E 51.9 Book Value 39.0 ₹ Dividend Yield 1.35 % ROCE 42.8 %
ROE 36.5 % Face Value 1.00 ₹ DMA 50 762 ₹ DMA 200 738 ₹
Chg in FII Hold 0.06 % Chg in DII Hold -0.06 % PAT Qtr 441 Cr. PAT Prev Qtr 395 Cr.
RSI 55.4 MACD 6.32 Volume 17,71,781 Avg Vol 1Wk 11,12,829
Low price 680 ₹ High price 814 ₹ PEG Ratio 5.49 Debt to equity 0.04
52w Index 71.2 % Qtr Profit Var 19.5 % EPS 14.9 ₹ Industry PE 22.0

📊 Marico (MARICO) is trading above both its 50 DMA (₹762) and 200 DMA (₹738), confirming strong short-term and medium-term support. RSI at 55.4 reflects healthy bullish momentum, while MACD (6.32) signals positive divergence. Bollinger Bands show price moving toward the upper band, suggesting potential continuation of the uptrend. Current volume (17.7 lakh) is significantly above the 1-week average (11.1 lakh), highlighting strong participation.

💡 Optimal Entry: ₹760–₹770 (near DMA support)

🚪 Exit if Holding: Profit-taking zone around ₹805–₹815; Stop-loss below ₹750

📈 Trend Status: Trending upward with bullish momentum

✅ Positive

  • Trading above both 50 DMA and 200 DMA
  • Strong ROE (36.5%) and ROCE (42.8%)
  • Quarterly PAT growth (₹395 Cr → ₹441 Cr)
  • EPS at ₹14.9 supports earnings visibility
  • FII holdings increased (+0.06%)
  • Low debt-to-equity ratio (0.04)

⚠️ Limitation

  • High valuation (P/E 51.9 vs industry 22.0)
  • PEG ratio at 5.49 indicates stretched growth-adjusted valuation
  • DII holdings declined (-0.06%)
  • Stock trading close to 52-week high, limiting upside

📉 Company Negative News

  • Valuation concerns due to premium multiples
  • Reduced domestic institutional participation

📈 Company Positive News

  • Strong quarterly PAT growth (+19.5%)
  • EPS stability supports long-term earnings visibility
  • FII inflows indicate foreign investor confidence

🏭 Industry

  • FMCG sector average PE at 22.0, Marico trades at a premium (51.9)
  • Sector outlook remains strong with steady consumer demand

🔎 Conclusion

Marico is trending upward with strong technical signals and robust fundamentals. Entry near ₹760–₹770 offers a favorable risk-reward setup, while exits around ₹805–₹815 are advisable. Despite strong earnings growth and efficiency metrics, stretched valuations suggest cautious positioning for short-term traders.

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