⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
GILLETTE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | GILLETTE | Market Cap | 28,418 Cr. | Current Price | 8,717 ₹ | High / Low | 11,505 ₹ |
| Stock P/E | 45.8 | Book Value | 357 ₹ | Dividend Yield | 1.38 % | ROCE | 56.1 % |
| ROE | 41.6 % | Face Value | 10.0 ₹ | DMA 50 | 8,316 ₹ | DMA 200 | 8,905 ₹ |
| Chg in FII Hold | -0.24 % | Chg in DII Hold | -0.26 % | PAT Qtr | 172 Cr. | PAT Prev Qtr | 144 Cr. |
| RSI | 64.0 | MACD | 53.3 | Volume | 25,229 | Avg Vol 1Wk | 1,06,967 |
| Low price | 7,412 ₹ | High price | 11,505 ₹ | PEG Ratio | 4.34 | Debt to equity | 0.00 |
| 52w Index | 31.9 % | Qtr Profit Var | 36.9 % | EPS | 190 ₹ | Industry PE | 46.8 |
📊 Core Financials
- Revenue & Profit Growth: Quarterly PAT rose from 144 Cr. to 172 Cr., showing healthy growth with 36.9% YoY profit variation.
- Margins: ROE at 41.6% and ROCE at 56.1% reflect exceptional profitability and capital efficiency.
- Debt Ratios: Debt-to-equity at 0.00 indicates a completely debt-free balance sheet.
- Cash Flows: Strong operating cash flows supported by consistent consumer demand.
- Return Metrics: EPS at 190 ₹ highlights strong earnings power.
💹 Valuation Indicators
- P/E Ratio: 45.8, close to industry PE of 46.8, suggesting fair valuation.
- P/B Ratio: ~24.4 (Current Price / Book Value), indicating premium valuation.
- PEG Ratio: 4.34, relatively high, showing growth is priced in at a premium.
- Intrinsic Value: Current price (8,717 ₹) is slightly above fair value; upside potential limited unless earnings accelerate further.
🏢 Business Model & Competitive Advantage
- Operates in FMCG sector with strong brand presence in grooming and personal care.
- Competitive advantage lies in brand loyalty, premium positioning, and global parent support (P&G).
- Resilient business model with steady cash flows from consumer staples.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 8,200 ₹ – 8,500 ₹ (near DMA 50 and DMA 200).
- Long-Term Holding: Strong fundamentals and brand moat make it suitable for long-term investors, though valuation is on the higher side.
Positive
- Debt-free balance sheet.
- Exceptional ROE and ROCE.
- Strong quarterly profit growth.
- Stable dividend yield of 1.38%.
Limitation
- High P/B and PEG ratios indicate expensive valuation.
- Stock price volatility with 52-week index at 31.9%.
- Moderate trading volumes compared to peers.
Company Negative News
- Reduction in FII (-0.24%) and DII (-0.26%) holdings, showing cautious institutional sentiment.
Company Positive News
- Quarterly PAT growth and strong brand-driven demand.
- Resilient performance despite premium valuations.
Industry
- FMCG sector remains defensive with steady demand.
- Industry PE at 46.8 indicates investor optimism and premium valuations.
Conclusion
- Gillette India is a fundamentally strong FMCG player with robust profitability and brand moat.
- Valuation is premium, limiting near-term upside.
- Best suited for long-term investors seeking exposure to consumer staples with strong brand equity.
Would you like me to also contrast Gillette’s valuation with other FMCG peers like Hindustan Unilever or Colgate-Palmolive to highlight relative positioning?