MARICO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | MARICO | Market Cap | 98,107 Cr. | Current Price | 756 ₹ | High / Low | 814 ₹ |
| Stock P/E | 50.6 | Book Value | 39.0 ₹ | Dividend Yield | 1.39 % | ROCE | 42.8 % |
| ROE | 36.5 % | Face Value | 1.00 ₹ | DMA 50 | 763 ₹ | DMA 200 | 731 ₹ |
| Chg in FII Hold | -0.19 % | Chg in DII Hold | 0.35 % | PAT Qtr | 441 Cr. | PAT Prev Qtr | 395 Cr. |
| RSI | 43.9 | MACD | -2.87 | Volume | 17,35,709 | Avg Vol 1Wk | 23,28,665 |
| Low price | 615 ₹ | High price | 814 ₹ | PEG Ratio | 5.36 | Debt to equity | 0.04 |
| 52w Index | 71.1 % | Qtr Profit Var | 19.5 % | EPS | 14.9 ₹ | Industry PE | 22.0 |
📊 Chart & Trend: Marico trades at ₹756, below its 50 DMA (₹763) but above its 200 DMA (₹731). This indicates short-term weakness but medium-term support, suggesting consolidation with a mild bullish undertone.
📉 Momentum Indicators: RSI at 43.9 shows neutral momentum, leaning slightly bearish. MACD at -2.87 confirms mild downward pressure. Bollinger Bands suggest price is near the lower band, with support around ₹740–₹750 and resistance near ₹770–₹780.
📈 Volume Trends: Current volume (17.3 lakh) is lower than the 1-week average (23.2 lakh), reflecting reduced participation and lack of strong buying conviction.
🔑 Entry Zone: ₹740–₹750 (near support and oversold levels).
🚪 Exit Zone: ₹770–₹780 (near resistance and 50 DMA).
📌 Trend Status: The stock is in consolidation with neutral bias, awaiting a breakout above ₹780 or breakdown below ₹740.
Positive
- Quarterly PAT improved (₹395 Cr → ₹441 Cr).
- EPS at ₹14.9 indicates steady earnings power.
- ROCE (42.8%) and ROE (36.5%) show excellent efficiency.
- DII holdings increased (+0.35%), showing domestic institutional support.
- Dividend yield at 1.39% provides income stability.
Limitation
- Stock P/E at 50.6 is much higher than industry PE of 22.0.
- PEG ratio at 5.36 suggests expensive valuation relative to growth.
- Dividend yield is modest compared to valuation levels.
- 52-week index at 71.1% shows strong past performance but limited upside potential.
Company Negative News
- FII holdings decreased (-0.19%), showing reduced foreign investor confidence.
- Stock trading below 50 DMA, signaling short-term weakness.
Company Positive News
- Sequential PAT growth highlights profitability momentum.
- DII stake increased, supporting long-term confidence.
Industry
- FMCG sector PE at 22.0, much lower than Marico’s valuation of 50.6.
- Sector rotation favors defensive FMCG stocks, but valuations remain stretched for premium players.
Conclusion
⚖️ Marico is consolidating with neutral momentum, trading below its 50 DMA but above its 200 DMA. Entry near ₹740–₹750 offers margin of safety, while exits around ₹770–₹780 provide profit-taking opportunities. Despite strong profitability and efficiency ratios, high valuations and reduced FII support limit upside, though domestic institutional confidence and sector resilience provide long-term support.
Would you like me to extend this into a peer benchmarking overlay with Hindustan Unilever, Dabur, and Nestlé India to highlight Marico’s relative valuation and technical strength within the FMCG sector?