Report dated on 23 April, 2018; Compiled by Sandip Patel
Marico Limited is one of India’s leading consumer product companies operating in the beauty and wellness space. Currently present in 25 countries across emerging markets of Asia and Africa, Marico has nurtured multiple brands in the categories of hair care, skin care, edible oils, health foods, male grooming and fabric care. Marico’s India business markets household brands such as Parachute, Parachute Advansed, Saffola, Hair & Care, Nihar, Nihar Naturals, Livon, Set Wet, Mediker and Revive among others adding value to the life of 1 in every 3 Indians. The International business offers unique brands such as Parachute, HairCode, Fiancée, Caivil, Hercules, Black Chic, Isoplus, Code 10, Ingwe, X-Men and Thuan Phat that are localized to fulfill the lifestyle needs of its international consumers. Charting an annual turnover of INR 59 billion (Financial Year 2016 – 2017) across the entire portfolio, Marico’s sustainable growth story rests on an empowering work culture that encourages its members to take complete ownership and make a difference to the entire business ecosystem.
New product launches during First Quarter of 2018
- Saffola Edible Oil launched its new packaging with relevant benefit positioning for each of the variants derived from factors affecting heart health.
- Exciting and super nourishing range of fruit-based hair oils under the Hair & Care brand available in two variants: Green (which contains the extracts Olive, Sweet Lime and Green Apple) and Orange (which contains the extracts of Strawberry, Orange and Pomegranate).
- Parachute Advansed Men Range;
- Set Wet Gels with New Exciting Packaging;
- Set Wet Beard Gels & Cream;
- Set Wet No-Gas & Blast
The stock is in a sloppy uptrend which has witnessed a price-wise correction after recording new high. The 50-week and 100-week moving averages have subsequently given a strong support to show a bounce back to record new highs in stock price.
Currently 50-week moving average is giving a good healthy support and a good price volume action helping to surpass the hurdle of price decline.
RSI and Stochastic have given a positive signal as both of the indicators are above the neutral line which shows a good positive trend continuation to record a new high.
MACD is trading above its average and have recently given a bullish crossover in the stock price to give a positive buy signal.
As per the Current weekly set up, I believe that the stock will move higher by utilising prior consolidation
On the higher side, the stock will face a major hurdle at Rs. 374, which is coinciding with prior high connecting trend line. However, in any case of decline, the stock will get a strong support at its 100-week moving average which is nearly placed at Rs. 295.
Conclusion: A long position in stock of Marico limited can be initiated in the range of Rs. 315-325 with the Stop Loss of Rs. 295 and the Target of Rs. 374.