Marico share price closed one percent higher on Friday but the stock is looking bullish on the technical charts and we could see breakout towards 52-week high for this FMCG major. Marico is quite close to its 52-week high and a move above Rs 700 could see a strong bullish breakout in this stock. Marico Limited, one of India’s leading consumer goods companies, continues to impress with its strong financial performance and strategic positioning. Despite global challenges, Marico has posted consistent growth, bolstered by its dominant brands in the personal care, home care, and food sectors. The stock, trading between Rs 664.70 and Rs 679.60, boasts a market capitalization of Rs 87.19k crore and a P/E ratio of 54.93. This article dives into Marico's financial metrics, offers technical analysis, and provides actionable insights for investors interested in capitalizing on the company’s performance and potential growth.

Financial Performance Overview

Key Financial Metrics

Performance Highlights

P/E Ratio: Marico’s relatively high P/E ratio of 54.93 indicates strong market expectations for its growth, but it also suggests that the stock may be trading at a premium compared to its peers.
Stock Range: The 52-week high and low range from Rs 486.30 to Rs 719.85 reflects the stock's potential to recover and continue its upward trajectory. The stock is currently trading near its 52-week high, showing strength.

Recent Analyst Recommendations

Kotak Securities
Kotak Securities recently maintained a Buy recommendation for Marico, with a target price of Rs 750. The analyst noted Marico's robust performance across its key segments, including the strong growth of its Parachute and Saffola brands. The firm's focus on innovation and expanding its presence in emerging markets is expected to drive future growth.

Motilal Oswal
Motilal Oswal has also reiterated a Buy rating for Marico, setting a target price of Rs 725. The report highlights Marico's consistent growth trajectory and its ability to maintain a solid margin profile, despite the challenges faced in the FMCG sector.

Technical Analysis: Candlestick Patterns and Key Levels

Candlestick Patterns
Marico’s recent chart formation indicates a Bullish Engulfing Pattern on the daily timeframe. This pattern is significant because it signals a potential reversal in sentiment from bearish to bullish, especially considering the stock's approach to the 52-week high.

Fibonacci Retracement Levels
Using the 52-week high of Rs 719.85 and low of Rs 486.30, the Fibonacci retracement levels are as follows:

38.2% Level: Rs 611.60 serves as an important support level. A pullback to this level could present a buying opportunity for traders.
50.0% Level: Rs 653.10 represents the midpoint and may act as a resistance if the stock pushes higher from current levels.
61.8% Level: Rs 694.60 is the next critical resistance level to watch if the stock continues its upward trajectory.

Support and Resistance Levels

Immediate Support: Rs 664.70 (recent low)
Critical Support: Rs 561.50 (23.6% Fibonacci level)
Immediate Resistance: Rs 719.85 (52-week high)
Key Resistance: Rs 738.00 (76.4% Fibonacci level)

If Marico breaks the Rs 719.85 level, it could continue its climb toward the Rs 738.00 level, offering a significant upside potential.

Actionable Insights for Investors

Short-Term Strategy

Investors looking for short-term gains should consider entering the stock if it consolidates around Rs 664.70. A potential breakout above Rs 719.85 could signal further upside towards Rs 738.
Medium-Term Opportunity

Accumulate Marico shares if they dip towards the Rs 611.60–653.10 range, as these levels provide strong support. Look for upward momentum if the stock breaks past Rs 694.60.
Long-Term Potential

Marico’s strong brand portfolio and focus on health and wellness position it well for sustained growth. Long-term investors may benefit from holding the stock with a target price of Rs 725–750, as suggested by analysts.