Marico Ltd.
NSE: MARICOMarico Ltd.: A 30-second snapshot
Marico (NSE: MARICO) trades at Rs 805.7, up 13.1% over 12 months and 7.4% above its 200-DMA of Rs 750.4. FY26 revenue grew 22% — the fastest annual pace in 14 years per company commentary — and Q4FY26 net profit rose 18% YoY to Rs 408 crore. The trailing PE of 59.4x sits at a 27.7% premium to the forward PE of 43.0x, with 38 analysts covering the stock, reflecting expectations of earnings acceleration.
P/E
59.4
Forward P/E
42.7
ROE
+41.4%
Debt / Equity
12.39
Profit Margin
+12.9%
Div. Yield
+0.5%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
65/100
News
8 headlines · 4 positive · 0 negative
Marico Shares Hit 4% Upper Circuit To Record High On Strong Q4 Earnings: Should You Buy? - NDTV Profit
NDTV Profit
Marico Q4 revenue at ₹3,333 crore, up 22%; FY26 posts fastest growth in 14 years - Fortune India
Fortune India
Marico Q4FY26 result: Net profit rises 18% to ₹408 crore on strong growth - Business Standard
Business Standard
Beyond Parachute: Marico swaps coconut oil comfort for a premium growth playbook - The Economic Times
The Economic Times
Marico's CMO on why Parachute Advansed shampoo is betting 55% of ad spends on digital - Social Samosa
Social Samosa
Recent context
- ·Q4FY26 results (May 2026): net profit up 18% YoY to Rs 408 crore, revenue up 22% to Rs 3,333 crore; the company signalled a strategic pivot toward premium categories beyond the core Parachute coconut oil franchise, described as the fastest revenue growth in 14 years.
- ·The company is reportedly allocating 55% of advertising spend for Parachute Advansed shampoo to digital channels, indicating a media-mix shift toward digital; premium product expansion is cited as a key growth pillar in current management commentary.
- ·News sentiment across 8 articles is net positive (4 positive, 4 neutral, 0 negative), entirely concentrated around the Q4FY26 results window; no adverse regulatory, governance, or competitive disruption headlines appeared in the sample.
Strengths
- +ROE of 41.4% ranks 3rd of 6 FMCG peers and was sustained above 15% in 4 of the last 5 measurable years, with FCF positive in 4 of 5 years — indicating durable earnings quality over the measurement window.
- +Revenue growth of 22.1% over 5 years is among the stronger rates in the FMCG peer group; Q4FY26 revenue of Rs 3,333 crore was up 22% YoY, with management describing FY26 as the company's fastest annual revenue growth in 14 years.
- +Price momentum is positive: up 13.1% over 12 months, above both 50-DMA (Rs 786.6) and 200-DMA (Rs 750.4), with a drawdown of 5.1% from the 52-week high and RSI at 45.4 (neutral territory).
- +Forward PE of 43.0x represents a 27.7% compression from the trailing PE of 59.4x, reflecting analyst expectations of meaningful earnings growth; nearest technical support levels are mapped at Rs 760.6 and Rs 740.4.
Weaknesses
- −5-year earnings growth of 14.5% lags 5-year revenue growth of 22.1% by 7.6 percentage points — profit margin of 12.95% shows that incremental revenue has not converted to profit at the same rate over this period.
- −Trailing PE of 59.4x is the 4th highest of 6 FMCG peers (above HUL at 46.1x and Britannia at 49.1x); the current valuation is contingent on the 27.7% forward-PE compression materialising through earnings growth.
- −Debt-to-equity of 12.4 is elevated relative to the asset-light FMCG norm; the debt trend is flat rather than declining, and FCF was not positive in every year across the 5-year measurement window.
- −Composite quality score of 52 ranks 3rd of 6 FMCG peers, behind NESTLEIND (61) and HINDUNILVR (58), despite carrying a higher ROE than HUL — the scoring captures structural factors such as leverage and margin consistency that ROE alone does not reflect.
Open questions
- ?To what extent does the 7.6-percentage-point gap between 5-year revenue growth (22.1%) and earnings growth (14.5%) reflect temporary cost pressures — such as copra commodity price cycles — versus a structural compression in operating leverage as Marico shifts toward premium product categories?
- ?How concentrated is current revenue and profit in the core Parachute coconut oil segment, and what has the historical relationship been between copra commodity prices and Marico's net margins?
- ?At a trailing PE of 59.4x with a D/E of 12.4, how does the current valuation compare to Marico's own historical PE range, and over what time horizons has the gap between trailing and forward PE historically closed?
- ?Does the composite quality score of 52 — ranking 3rd of 6 peers despite a 41.4% ROE — reflect a temporary balance-sheet condition or a multi-year structural feature, and how has the D/E ratio trended across the last 5 reported years?
Peer comparison: FMCG
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| MARICO | Marico Ltd.You're viewing | 59.4 | +41.4% | 52 |
| Industry avg | across 5 peers | 52.4 | +37.5% | 51 |
| NESTLEIND | Nestle India Ltd. | 76.5 | +76.3% | 61 |
| HINDUNILVR | Hindustan Unilever Ltd. | 46.1 | +21.6% | 58 |
| BRITANNIA | Britannia Industries Ltd. | 49.1 | +53.3% | 50 |
| TATACONSUM | Tata Consumer Products Ltd. | 73.5 | +6.9% | 45 |
| ITC | ITC Ltd. | 16.9 | +29.3% | 41 |
Technical state
Current price
₹805.70
SMA 50
₹786.63
SMA 200
₹750.43
RSI (14)
45.4 (neutral)
From 52w high
-5.1%
1Y return
+13.1%
3M return
-0.0%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumTrailing PE of 59.4x is the 4th highest of 6 FMCG peers ranked, above HUL (46.1x) and Britannia (49.1x) but below Nestle (76.5x) and Tata Consumer (73.5x); the gap to forward PE of 43.0x implies the market is pricing in meaningful near-term earnings acceleration — any shortfall would compress the multiple.
- mediumDebt-to-equity of 12.4 is elevated relative to the asset-light FMCG sector norm; the debt trend is flat (not declining), and FCF was positive in 4 of the last available years rather than consistently across all measured periods.
- low5-year earnings growth of 14.5% lags 5-year revenue growth of 22.1% by 7.6 percentage points, indicating profit-margin compression over the period; profit margin currently stands at 12.95%.
- lowNews sample of 8 articles is sparse for a large-cap FMCG name; all articles are clustered around the Q4FY26 results release window (May 2026), leaving no visibility on newsflow between reporting periods.
Cross-section contradictions
- ROE of 41.4% sustained across 4 of 5 measurable years and positive FCF in 4 of 5 years describe a high-quality business, yet the composite quality score of 52 ranks 3rd of 6 FMCG peers — below NESTLEIND (61) and HINDUNILVR (58) — suggesting the scoring methodology is capturing the elevated D/E of 12.4 and margin-compression dynamics that headline ROE does not surface on its own.
- 5-year earnings growth of 14.5% materially trails 5-year revenue growth of 22.1%, yet the stock trades at a trailing PE of 59.4x — premium valuation that implies the market expects the earnings-to-revenue conversion rate to improve materially from current levels.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days