GILLETTE - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.3

📊 Core Financials Breakdown

Profitability

ROE: 41.6% and ROCE: 56.1% — exceptional, indicating elite capital efficiency and strong operational performance.

EPS: ₹173 — robust earnings base, consistent with its premium pricing and brand strength.

PAT Qtr: ₹146 Cr vs ₹159 Cr — slight dip, but still healthy YoY growth of 25.6%.

Balance Sheet & Cash Flow

Debt-to-Equity: 0.00 — debt-free, a major strength for a consumer goods company.

Book Value: ₹314 — implies a P/B ratio of ~31.6, which is high but justified by superior returns.

Dividend Yield: 1.13% — modest, but consistent and sustainable.

💰 Valuation Metrics

Metric Value Comment

P/E Ratio 57.4 Slightly above industry average (52.8) — premium pricing

PEG Ratio 5.43 Expensive relative to growth — caution warranted

Intrinsic Value ~₹9,200–₹9,500 CMP slightly above fair value zone

Valuation is stretched, reflecting brand premium and defensive nature, but growth expectations may be overbaked.

🧼 Business Model & Competitive Edge

Sector: FMCG — grooming and oral care

Strengths

Market leader in shaving systems and oral hygiene with brands like Gillette, Venus, and Oral-B.

High-margin portfolio with strong pricing power and brand loyalty.

Consistent cash flows and strong parentage (Procter & Gamble).

FII holding up (+0.49%) — positive institutional sentiment.

Challenges

PEG ratio suggests growth is priced in.

DII holding slightly down (-0.29%) — some caution from domestic institutions.

Volume and RSI indicate short-term weakness.

📉 Technicals & Entry Zone

Current Price: ₹9,930

DMA 50: ₹10,239 | DMA 200: ₹9,476 — trading below 50 DMA, short-term bearish

RSI: 40.5 — approaching oversold zone

MACD: Deeply negative — momentum weak

📌 Suggested Entry Zone: ₹9,200–₹9,500

A dip near the 200 DMA would offer a better margin of safety for long-term accumulation.

🧭 Long-Term Holding Guidance

Hold if invested: Strong fundamentals, zero debt, and brand dominance make Gillette a high-quality long-term play.

Accumulate on dips: Ideal for investors seeking stable returns from a premium FMCG franchise.

You can explore Gillette India’s full financials and valuation metrics

1

or review its performance and peer comparison on Value Research

2

. Let me know if you'd like a comparison with Colgate-Palmolive or P&G Hygiene.

1

stockanalysis.com

2

www.valueresearchonline.com

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