MARICO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical 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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