⚠ 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: 4.2
| Stock Code | PGHH | Market Cap | 38,645 Cr. | Current Price | 11,921 ₹ | High / Low | 14,824 ₹ |
| Stock P/E | 45.0 | Book Value | 287 ₹ | Dividend Yield | 1.43 % | ROCE | 104 % |
| ROE | 75.7 % | Face Value | 10.0 ₹ | DMA 50 | 12,582 ₹ | DMA 200 | 13,364 ₹ |
| Chg in FII Hold | -0.05 % | Chg in DII Hold | -0.02 % | PAT Qtr | 301 Cr. | PAT Prev Qtr | 210 Cr. |
| RSI | 35.3 | MACD | -254 | Volume | 9,121 | Avg Vol 1Wk | 13,710 |
| Low price | 11,612 ₹ | High price | 14,824 ₹ | PEG Ratio | -53.5 | Debt to equity | 0.00 |
| 52w Index | 9.62 % | Qtr Profit Var | 12.2 % | EPS | 265 ₹ | Industry PE | 46.8 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT improved to ₹301 Cr from ₹210 Cr, showing healthy growth. EPS at ₹265 reflects strong earnings power.
- Margins: ROCE at 104% and ROE at 75.7% are exceptionally high, indicating superior efficiency and profitability.
- Debt Ratios: Debt-to-equity at 0.00 shows a debt-free balance sheet, enhancing financial resilience.
- Cash Flows: Strong operating cash flows implied by high profitability and zero leverage.
💹 Valuation Indicators
- P/E Ratio: 45.0, slightly below industry average of 46.8, suggesting fair valuation.
- P/B Ratio: Current price ₹11,921 vs. book value ₹287 → ~41.5x, very expensive relative to assets.
- PEG Ratio: -53.5, negative, reflecting weak growth-adjusted valuation despite strong profitability.
- Intrinsic Value: Valuation appears stretched relative to book value, but justified by strong return metrics and brand strength.
🏢 Business Model & Competitive Advantage
- PGHH (Procter & Gamble Hygiene and Health Care) operates in consumer healthcare and hygiene products, with strong brand recognition.
- Competitive advantage lies in global brand support, product leadership, and debt-free structure.
- Business model benefits from consistent demand in FMCG and healthcare segments.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between ₹11,600 – ₹11,900, near 52-week low and below DMA50.
- Long-Term Holding: Strong fundamentals, debt-free balance sheet, and high ROE/ROCE make it a solid long-term compounder despite premium valuation.
✅ Positive
- Exceptional ROCE (104%) and ROE (75.7%).
- Debt-free balance sheet ensures financial stability.
- Strong brand presence in healthcare and hygiene products.
⚠️ Limitation
- Extremely high P/B ratio (~41.5x) indicates stretched valuation.
- PEG ratio negative (-53.5), showing weak growth-adjusted valuation.
- Dividend yield of 1.43% is modest compared to valuation levels.
📉 Company Negative News
- Minor decline in institutional confidence with FII (-0.05%) and DII (-0.02%) holdings reduced.
- Stock trading below DMA200 indicates weak momentum.
📈 Company Positive News
- Quarterly PAT improved from ₹210 Cr to ₹301 Cr.
- EPS at ₹265 highlights strong earnings power.
- Debt-free structure continues to attract investors.
🏭 Industry
- FMCG and healthcare sector trades at industry PE of 46.8, aligned with PGHH’s valuation.
- Sector growth supported by rising healthcare awareness and hygiene demand.
🔎 Conclusion
- PGHH is financially strong with exceptional return ratios and a debt-free balance sheet.
- Valuation is stretched, especially on P/B and PEG metrics, limiting near-term upside.
- Best suited for long-term investors seeking stability and brand-backed growth, with entry around ₹11,600 – ₹11,900 offering a reasonable margin of safety.
Would you like me to also prepare a comparative HTML snapshot of PGHH versus Dabur or HUL to highlight relative valuation and profitability in the FMCG healthcare space?