MARICO - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 20 Dec 25, 03:55 pm

Technical Rating: 3.9

📈 Chart Patterns & Trend: MARICO is trading at ₹738, above both its 50 DMA (₹727) and 200 DMA (₹705). This indicates a bullish uptrend with strong support from moving averages, though the stock is near its 52-week high of ₹766, suggesting possible resistance.

📊 Moving Averages: Price above both short- and long-term averages confirms bullish sentiment. Key support lies near ₹727 (50 DMA) and ₹705 (200 DMA), while resistance is around ₹760–₹766.

📉 RSI: At 59.4, RSI is in the bullish zone but not overbought, leaving room for further upside.

📈 MACD: Positive MACD (2.94) signals bullish momentum, supporting continuation of the uptrend.

📉 Bollinger Bands: Price is near the upper band, indicating short-term resistance around ₹766. A breakout above this level could trigger fresh highs.

📊 Volume Trends: Current volume (10.9L) is below the weekly average (14.3L), showing reduced participation. Stronger volume is needed to confirm a breakout above resistance.

🎯 Entry Zone: ₹720–₹730 (near support)

🚪 Exit Zone: ₹760–₹770 (near resistance/high)

Positive

• Strong ROCE (42.8%) and ROE (36.5%) reflect excellent efficiency and profitability.
• Low debt-to-equity ratio (0.04) ensures financial stability.
• Dividend yield of 1.43% provides steady income for investors.
• Stock trading above both 50 DMA and 200 DMA confirms bullish momentum.

Limitation

• High P/E (51.0) compared to industry PE (26.3) suggests overvaluation.
• Quarterly PAT dropped from ₹777 Cr. to ₹399 Cr. (-24.6%).
• DII holding decreased (-0.73%), showing reduced domestic institutional confidence.
• PEG ratio of 5.40 highlights expensive valuation relative to growth.

Company Negative News

• Sharp decline in quarterly profits raises concerns about earnings stability.
• Reduced domestic institutional participation adds pressure on valuations.

Company Positive News

• FII holding increased (+0.59%), showing foreign investor confidence.
• Strong fundamentals with high efficiency ratios and low leverage.
• Consistent dividend payouts support investor sentiment.

Industry

• Industry PE at 26.3 is much lower than MARICO’s PE (51.0), suggesting premium valuation.
• FMCG sector benefits from steady demand and brand strength, though margins are sensitive to input costs.

Conclusion

📌 MARICO is in a bullish uptrend, trading above key moving averages with positive MACD and supportive RSI. Entry near ₹720–₹730 offers favorable risk-reward, while resistance at ₹760–₹770 provides exit targets. Despite strong fundamentals and efficiency, high valuation and recent profit decline warrant cautious optimism in the near term.