GILLETTE - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.7

Let’s dissect Gillette India Ltd. (GILLETTE) — a premium consumer goods play with stellar fundamentals but a richly priced stock 💈📦

📊 Core Financial Health

Quarterly Earnings

PAT dipped slightly from ₹159 Cr. to ₹146 Cr. — a QoQ decline of ~8.2%, though YoY growth is respectable.

EPS of ₹173 is high and backed by consistent cash generation.

Return Efficiency

ROCE: 58.9%, ROE: 42.5% — phenomenal figures, underscoring capital-light operations and strong margins.

These are elite-tier metrics within the FMCG sector.

Debt Status

Debt to Equity: 0.00 — zero debt, which is great for sustainability and shields from interest rate volatility.

Institutional Moves

FII holding up by 0.49%, but a slight retreat in DII holding (–0.29%) — no alarming signals.

💸 Valuation Analysis

Metric Value Interpretation

P/E Ratio 61.8 Very high — pricing in premium brand & earnings

P/B Ratio ~34.1 Market pays a major premium over book value

PEG Ratio 5.97 Suggests valuation far exceeds earnings growth

Dividend Yield 1.05% Decent, better than peers, but not a dividend play

Intrinsic Value ~₹9,500–₹10,200 Current price of ₹10,712 is slightly stretched

Clearly, valuation is running hotter than fundamentals support — typical of marquee consumer brands.

🔧 Business Model & Competitive Edge

Gillette thrives on brand dominance in men’s grooming with products like razors and shaving creams.

Operates under Procter & Gamble, giving access to world-class R&D, marketing, and distribution.

High consumer stickiness, low churn, and recurring demand form a durable moat.

But the downside? Limited scope for rapid expansion in a saturated shaving segment.

📉 Technical Pulse & Entry Window

RSI: 51.2 — neutral zone, not indicating overbought or oversold.

MACD: +95.9 — bullish momentum building.

Price above DMA 50 and DMA 200, but near upper resistance zone.

🎯 Recommended Entry Zone

Conservative Buy: ₹9,800–₹10,200

Aggressive Entry (wait for correction): ₹9,300–₹9,800

📦 Long-Term Holding Outlook

✅ Brand strength, debt-free structure, and consistent margins

⚠️ Hefty valuation, slow growth in core category

🟡 Suitable for stable compounding over 5–10 years, not explosive growth

Want me to chart out comparisons with other FMCG giants like Dabur, Colgate-Palmolive, or Emami? Could be a fun battle of the brands 💥🏷️

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