⚠ 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.
PGHH - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | PGHH | Market Cap | 32,453 Cr. | Current Price | 10,001 ₹ | High / Low | 14,543 ₹ |
| Stock P/E | 37.8 | Book Value | 287 ₹ | Dividend Yield | 1.70 % | ROCE | 104 % |
| ROE | 75.7 % | Face Value | 10.0 ₹ | DMA 50 | 11,517 ₹ | DMA 200 | 12,787 ₹ |
| Chg in FII Hold | -0.05 % | Chg in DII Hold | -0.02 % | PAT Qtr | 301 Cr. | PAT Prev Qtr | 210 Cr. |
| RSI | 16.6 | MACD | -435 | Volume | 24,688 | Avg Vol 1Wk | 26,361 |
| Low price | 9,958 ₹ | High price | 14,543 ₹ | PEG Ratio | -45.0 | Debt to equity | 0.00 |
| 52w Index | 0.94 % | Qtr Profit Var | 12.2 % | EPS | 265 ₹ | Industry PE | 43.1 |
📊 Core Financials
- Revenue Growth: Quarterly PAT improved from ₹210 Cr to ₹301 Cr (+12.2%).
- Profit Margins: Strong margins supported by consumer goods portfolio.
- Debt Ratios: Debt-to-equity at 0.00 → debt-free balance sheet.
- Cash Flows: Stable and strong, typical of FMCG companies.
- Return Metrics: Exceptional ROCE (104%) and ROE (75.7%) → highly efficient capital utilization.
💹 Valuation Indicators
- P/E Ratio: 37.8 vs Industry PE of 43.1 → slightly undervalued relative to peers.
- P/B Ratio: ~34.8 (Price ₹10,001 / Book Value ₹287) → very high premium.
- PEG Ratio: -45.0 → negative, reflecting weak earnings growth outlook.
- Intrinsic Value: Current price moderately above fair value, but supported by strong fundamentals.
🏢 Business Model & Competitive Advantage
- PGHH (Procter & Gamble Hygiene and Health Care) operates in FMCG, focusing on healthcare and hygiene products.
- Competitive advantage lies in strong brand portfolio, global parent support, and leadership in consumer health products.
- Debt-free status and high return ratios strengthen overall health.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between ₹9,800 – ₹10,200 (near current lows).
- Long-Term Holding: Strong fundamentals and brand leadership make it a reliable long-term compounder, though growth outlook is modest.
✅ Positive
- Debt-free balance sheet.
- Exceptional ROCE (104%) and ROE (75.7%).
- Strong brand presence in FMCG healthcare.
- Dividend yield of 1.70% adds income support.
⚠️ Limitation
- Extremely high P/B ratio (~34.8).
- Negative PEG ratio (-45.0) indicates weak growth prospects.
- Stock trading far below 52-week high (₹14,543 → ₹10,001).
📉 Company Negative News
- Decline in FII (-0.05%) and DII (-0.02%) holdings.
- Weak growth outlook despite strong profitability.
📈 Company Positive News
- Quarterly PAT growth of 12.2%.
- Debt-free status ensures financial resilience.
- Strong dividend payout policy.
🏭 Industry
- FMCG sector remains resilient with steady demand for healthcare and hygiene products.
- Industry PE at 43.1, showing PGHH is slightly undervalued relative to peers.
🔎 Conclusion
PGHH combines debt-free stability with exceptional return ratios, making it a strong long-term holding in the FMCG healthcare space. While valuations are stretched on P/B and growth outlook is modest, its brand strength and profitability support steady compounding. Investors may accumulate near current levels for long-term exposure to resilient consumer demand.