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GILLETTE - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.8

Last Updated Time : 04 May 26, 11:57 am

Technical 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

📈 Chart & Trend: GILLETTE is trading near its 50 DMA (7,998 ₹) and slightly below the 200 DMA (8,532 ₹), suggesting neutral to mildly bearish bias. RSI at 51.0 indicates balanced momentum, neither overbought nor oversold. MACD at 52.2 remains positive, but the slope is flattening, showing limited strength. Bollinger Bands suggest price is mid-range, pointing to consolidation.

🔎 Momentum Signals: Current volume (20,974) is below the 1-week average (25,125), reflecting weak participation. Short-term sideways movement is likely unless volume improves.

🎯 Entry Zone: 7,400–7,500 ₹ (support zone)

🚪 Exit Zone: 8,500–8,700 ₹ (resistance near 200 DMA)

📊 Trend Status: Consolidating with mild upward bias.

Positive

  • Strong ROCE (56.1%) and ROE (41.6%) highlight superior profitability.
  • Debt-free balance sheet ensures financial stability.
  • Quarterly PAT rose to 172 Cr. from 144 Cr., showing earnings growth.
  • Dividend yield at 1.51% provides steady returns.

Limitation

  • High PEG ratio (3.96) indicates overvaluation relative to growth.
  • P/E of 41.8 is close to industry average (42.5), limiting valuation upside.
  • RSI and MACD show weak momentum, reducing breakout potential.
  • 52-week performance at 17.4% lags broader market peers.

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.

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