PGHH - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | PGHH | Market Cap | 32,936 Cr. | Current Price | 10,146 ₹ | High / Low | 14,543 ₹ |
| Stock P/E | 38.3 | Book Value | 287 ₹ | Dividend Yield | 1.68 % | ROCE | 104 % |
| ROE | 75.7 % | Face Value | 10.0 ₹ | DMA 50 | 10,490 ₹ | DMA 200 | 12,103 ₹ |
| Chg in FII Hold | -0.09 % | Chg in DII Hold | -0.07 % | PAT Qtr | 301 Cr. | PAT Prev Qtr | 210 Cr. |
| RSI | 49.2 | MACD | 6.66 | Volume | 4,766 | Avg Vol 1Wk | 6,690 |
| Low price | 8,979 ₹ | High price | 14,543 ₹ | PEG Ratio | -45.6 | Debt to equity | 0.00 |
| 52w Index | 21.0 % | Qtr Profit Var | 12.2 % | EPS | 265 ₹ | Industry PE | 42.5 |
📊 PGHH is a fundamentally strong FMCG player with exceptional efficiency metrics — ROCE (104%) and ROE (75.7%) — supported by a debt-free balance sheet. EPS of ₹265 reflects strong earnings power, and dividend yield of 1.68% provides steady income. However, valuations are stretched with a P/E of 38.3 vs industry average of 42.5, and a negative PEG ratio (-45.6) indicates poor growth visibility. Price momentum remains weak with the stock trading below DMA 50 and DMA 200, making entry timing crucial.
💡 Ideal Entry Price Zone: ₹9,000 – ₹9,500 (closer to 52-week low and below DMA 50 for valuation comfort).
⏳ Exit Strategy / Holding Period: Long-term investors should maintain a 5+ year horizon for compounding returns and dividend income. Partial profit booking can be considered near ₹12,000–₹12,500 if valuations stretch without earnings support. Stop-loss advisable around ₹9,800–₹10,000 if momentum weakens further.
✅ Positive
- Exceptional ROCE (104%) and ROE (75.7%).
- Debt-free balance sheet ensures financial stability.
- EPS of ₹265 reflects strong earnings power.
- Dividend yield of 1.68% provides steady income.
- Quarterly PAT growth (+12.2%) shows earnings consistency.
⚠️ Limitation
- Negative PEG ratio (-45.6) indicates poor growth visibility.
- Stock trades below DMA 50 (₹10,490) and DMA 200 (₹12,103).
- Weak trading volumes compared to averages.
- FII (-0.09%) and DII (-0.07%) holdings declined.
📉 Company Negative News
- Weak technical momentum with price below key moving averages.
- Institutional investors trimmed holdings marginally.
📈 Company Positive News
- Quarterly PAT improved (₹301 Cr vs ₹210 Cr).
- Strong fundamentals with zero debt and high profitability ratios.
🏭 Industry
- Industry P/E: 42.5, highlighting PGHH’s relatively fair valuation.
- FMCG sector remains resilient with steady demand and defensive characteristics.
🔎 Conclusion
PGHH is a fundamentally robust FMCG stock with strong profitability and dividend support, making it a good candidate for long-term investment. New investors should wait for entry around ₹9,000–₹9,500 for valuation comfort. Existing holders can maintain a 5+ year horizon, with partial profit booking near ₹12,000–₹12,500. Monitoring PEG ratio and technical momentum will be key for sustained performance.