GILLETTE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | GILLETTE | Market Cap | 25,920 Cr. | Current Price | 7,954 ₹ | High / Low | 11,505 ₹ |
| Stock P/E | 41.8 | Book Value | 357 ₹ | Dividend Yield | 1.51 % | ROCE | 56.1 % |
| ROE | 41.6 % | Face Value | 10.0 ₹ | DMA 50 | 7,998 ₹ | DMA 200 | 8,532 ₹ |
| Chg in FII Hold | -0.41 % | Chg in DII Hold | 0.36 % | PAT Qtr | 172 Cr. | PAT Prev Qtr | 144 Cr. |
| RSI | 51.0 | MACD | 52.2 | Volume | 20,974 | Avg Vol 1Wk | 25,125 |
| Low price | 7,206 ₹ | High price | 11,505 ₹ | PEG Ratio | 3.96 | Debt to equity | 0.00 |
| 52w Index | 17.4 % | Qtr Profit Var | 36.9 % | EPS | 190 ₹ | Industry PE | 42.5 |
📊 Financials: GILLETTE demonstrates strong profitability with ROE at 41.6% and ROCE at 56.1%, supported by a debt-free balance sheet. Quarterly PAT rose to ₹172 Cr. from ₹144 Cr., showing earnings growth. Dividend yield of 1.51% adds steady income. However, 52-week performance at 17.4% lags peers, reflecting limited price momentum.
💹 Valuation: Current P/E of 41.8 is aligned with the industry average of 42.5, suggesting fair valuation. PEG ratio of 3.96 indicates overvaluation relative to growth. Book value at ₹357 vs. CMP ₹7,954 highlights a steep P/B multiple, justified only by brand strength and profitability.
🏗️ Business Model: GILLETTE operates in FMCG personal care, with strong brand equity and pricing power. Its competitive advantage lies in global brand recognition, premium positioning, and consistent demand for grooming products.
📈 Entry Zone: Accumulation near ₹7,400–₹7,500 (support zone) offers favorable risk-reward. RSI at 51.0 indicates neutral momentum, while MACD at 52.2 shows flattening strength. Exit strategy near ₹8,500–₹8,700 (resistance at 200 DMA).
🕰️ Long-Term Holding: Strong fundamentals and brand strength support long-term holding, but valuation concerns limit near-term upside. Suitable for investors seeking stable FMCG exposure with moderate growth potential.
Positive
- High ROCE (56.1%) and ROE (41.6%) efficiency
- Debt-free balance sheet ensures stability
- Quarterly PAT growth (+36.9%)
- Dividend yield of 1.51% provides steady returns
Limitation
- High PEG ratio (3.96) indicates overvaluation
- P/E aligned with industry average, limiting valuation upside
- Weak 52-week performance (17.4%) vs. peers
- Neutral RSI and flattening MACD reduce breakout potential
Company Negative News
- Decline in FII holdings (-0.41%) signals reduced foreign investor confidence
Company Positive News
- Strong quarterly profit growth (+36.9%)
- DII holdings increased (+0.36%), showing domestic institutional support
Industry
- Industry P/E at 42.5 reflects premium valuations across FMCG sector
- Sector supported by steady demand and brand strength
Conclusion
GILLETTE is consolidating with limited momentum but supported by strong fundamentals. Entry near ₹7,400–₹7,500 offers favorable risk-reward, while profit booking is advised near ₹8,500–₹8,700. Short-term outlook remains cautious due to valuation concerns, but long-term prospects are supported by profitability and brand strength.