GILLETTE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | GILLETTE | Market Cap | 25,940 Cr. | Current Price | 7,951 ₹ | 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 | 8,291 ₹ | DMA 200 | 8,756 ₹ |
| Chg in FII Hold | -0.24 % | Chg in DII Hold | -0.26 % | PAT Qtr | 172 Cr. | PAT Prev Qtr | 144 Cr. |
| RSI | 38.0 | MACD | -134 | Volume | 27,372 | Avg Vol 1Wk | 22,784 |
| Low price | 7,551 ₹ | High price | 11,505 ₹ | PEG Ratio | 3.96 | Debt to equity | 0.00 |
| 52w Index | 10.1 % | Qtr Profit Var | 36.9 % | EPS | 190 ₹ | Industry PE | 43.1 |
📊 Chart & Trend: Gillette is trading at ₹7,951, below both its 50 DMA (₹8,291) and 200 DMA (₹8,756), indicating weakness. RSI at 38.0 suggests the stock is approaching oversold territory, while MACD (-134) reflects strong bearish momentum. Bollinger Bands show price near the lower band, signaling pressure but potential for a rebound.
📈 Momentum Signals: Volume (27K) is slightly above the 1-week average (22K), showing mild activity. RSI below 40 indicates short-term weakness, but also hints at possible accumulation zones.
💡 Entry Zone: ₹7,700–₹7,850 (support zone).
🚪 Exit Zone: ₹8,250–₹8,400 (resistance). A breakout above ₹8,400 could open room toward ₹8,700.
📌 Trend Status: The stock is currently reversing downward after a steep correction from ₹11,505, with bearish undertones dominating near-term charts.
Positive
- Strong ROCE (56.1%) and ROE (41.6%) highlight excellent capital efficiency.
- Debt-free balance sheet ensures financial resilience.
- Quarterly PAT growth (₹172 Cr vs ₹144 Cr) shows earnings momentum.
- Dividend yield of 1.51% adds income appeal.
Limitation
- High P/E (41.8) compared to industry PE (43.1), limiting valuation comfort.
- PEG ratio of 3.96 suggests expensive valuation relative to growth.
- Stock trading below both 50 DMA and 200 DMA reflects technical weakness.
Company Negative News
- Decline in institutional holdings (FII -0.24%, DII -0.26%) signals reduced confidence.
- Stock corrected sharply from its 52-week high of ₹11,505, showing volatility.
Company Positive News
- EPS at ₹190 reflects strong profitability.
- Quarterly profit growth of 36.9% supports earnings strength.
- Strong brand positioning in FMCG ensures long-term demand stability.
Industry
- FMCG sector enjoys steady demand and premium valuations.
- Industry PE (43.1) highlights investor appetite for consumer goods stocks.
- Peers trade at similar valuations, keeping Gillette aligned with sector trends.
Conclusion
⚖️ Gillette is showing bearish reversal signals with RSI near oversold and MACD negative. Fundamentals remain strong (high ROCE/ROE, debt-free, solid EPS), but valuation is stretched (high P/E and PEG). Entry near ₹7,700–₹7,850 offers a margin of safety, with exits around ₹8,250–₹8,400. Long-term investors may hold for brand strength and profitability, while traders should wait for a reversal confirmation before momentum trades.
Selva, do you want me to extend this into a basket overlay with peer benchmarking against FMCG majors like HUL, Dabur, and Colgate-Palmolive? That would highlight relative strength and rotation opportunities across the consumer goods sector.