Marico Ltd.
FMCG · NSE
52-week range
₹674 – ₹843
From 52w high
-1.4%
RSI (14)
74.3
vs SMA 50 / 200
↑ 50 · ↑ 200
Marico trades at ₹829.75, up 13.8% over the past year and within 1.6% of its 52-week high, with price above both the 50-DMA (₹770.82) and 200-DMA (₹741.13). The trailing PE of 61.2x and ROE of 41.4% reflect a premium-valued, high-return FMCG franchise anchored by Saffola and Parachute; the forward PE of 44.0x implies the market is pricing in a meaningful step-up in earnings. FCF was positive in 4 of the past 5 years and ROE exceeded 15% in all 4 available years, consistent with an operationally resilient business.
- ✓ROE of 41.4% ranks 3rd among 6 FMCG peers tracked; Britannia (53.3%) and Nestle (76.3%) are higher, but Marico’s figure is well above HUL (21.6%) and TATACONSUM (6.9%).
- ✓Positive free cash flow in 4 of 5 tracked years and a persistence consistency score of 75 indicate that earnings have translated reliably into cash.
- ✓Revenue has grown at a 5-year CAGR of 22.1% and earnings at 14.5%; the divergence reflects cost-side or mix headwinds but top-line growth remains above the FMCG peer range visible in the data.
- ✓The stock is above both its 50-DMA and 200-DMA with a 10.9% gain over the past 3 months, showing sustained price momentum relative to its own moving averages.
- ✗RSI of 73.2 is in overbought territory; the nearest support levels are at ₹740.40, ₹727.70, and ₹723.55 — approximately 11–13% below current price.
- ✗Trailing PE of 61.2x sits above HUL (50.3x) and well above ITC (18.9x); at this valuation, even modest earnings disappointments could compress multiples noticeably.
- ✗Debt-to-equity of 12.4 is elevated relative to the asset-light positioning typical of branded FMCG; the debt trend is flat with no visible deleveraging path in the data.
- ✗Quality score of 52 ranks 3rd of 6 peers despite strong ROE, suggesting the composite score is penalising the higher leverage or a margin metric not captured by ROE alone.
- ·Marico’s MD commented in April 2026 that the food business could surpass the edible oil segment within four years, signalling a deliberate portfolio mix-shift away from the core Parachute franchise.
- ·The company raised advertising spend 5% YoY in Q4FY26 and has shifted over half of ad budgets to digital channels, with Beardo and Plix receiving 100% digital allocation — indicating a structural shift in how the company defends and grows its brand portfolio.
- ·Q4FY26 earnings were scheduled for a conference call on May 5, 2026; the results cycle was active at the time of this analysis, and any material earnings surprise would be the most proximate near-term price catalyst.
- ?Does the 22.1% revenue CAGR over five years reflect genuine volume expansion in Marico’s core categories, or is it primarily driven by commodity price pass-through in edible oils and coconut oil — and what does that imply for earnings durability?
- ?The food business is positioned as a future growth driver, but FMCG category expansions carry execution risk; what evidence exists that Marico’s distribution infrastructure and brand equity in food categories are commensurate with peers like Nestle (PE 81.6x, ROE 76.3%) that trade at higher multiples?
- ?With D/E at 12.4 and the debt trend flat, what is the intended use of leverage on the balance sheet, and how does that affect the business during commodity cost cycles?
- ?Given that RSI is at 73.2 and the stock is near its 52-week high, what events or data points — earnings revisions, category volume data, rural consumption trends — would most usefully inform a view on whether the current premium valuation is being sustained by improving fundamentals?
PE
61.2
Forward PE
44.0
ROE
+41.4%
Profit margin
+12.9%
D/E
12.39
Dividend yield
+0.5%
Quality score
52/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
4/5 yrs
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.Analysis generated 11 May 2026.