Marico Seals 100% Buyout Of True Elements Maker — SEBI Analyst Sees Nearly 15% Upside Ahead

The analyst highlighted strong fundamentals and positive technical indicators backing the stock.

Shares of Marico edged higher on Friday after the company said it will buy out the remaining 46.02% stake in HW Wellness Solutions, the maker of the True Elements brand, for ₹138 crore. 

The deal, signed with the founders and other shareholders, will increase Marico’s holding from 53.98% to full ownership, making HW Wellness a wholly owned subsidiary of Marico. The deal will make HW Wellness a wholly owned subsidiary of Marico.

Acquisition Boost

SEBI-registered analyst Ashok Kumar Aggarwal said the acquisition strengthens Marico’s food business by adding a new range of value-added nuts, protein products, and healthy snacks under the True Elements brand.

Technical View

Aggarwal noted that the stock is currently trading flat, but technical indicators point to strength. The Relative Strength Index (RSI) is above 60, while On Balance Volume (OBV) on weekly and monthly charts shows accumulation. 

He added that Marico is trading above all major moving averages on daily, weekly, and monthly timeframes, reflecting a positive trend.

The analyst recommended investors to initiate a ‘Buy’ at ₹722–₹732 with a stop loss of ₹680 and a target price of ₹840 on Marico shares.

Fundamentals

According to Aggarwal, Marico’s fundamentals remain strong, with a return on capital employed (ROCE) of 45.2%, return on equity (ROE) of 41.3%, and a price-to-earnings multiple of 57.2.

What Is The Retail Mood?

On Stocktwits, retail sentiment was ‘bullish’ amid ‘normal’ message volume.

Marico’s stock has risen 15.7% so far in 2025.

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