GILLETTE - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.3
| Stock Code | GILLETTE | Market Cap | 28,418 Cr. | Current Price | 8,717 ₹ | High / Low | 11,505 ₹ |
| Stock P/E | 45.8 | Book Value | 357 ₹ | Dividend Yield | 1.38 % | ROCE | 56.1 % |
| ROE | 41.6 % | Face Value | 10.0 ₹ | DMA 50 | 8,316 ₹ | DMA 200 | 8,905 ₹ |
| Chg in FII Hold | -0.24 % | Chg in DII Hold | -0.26 % | PAT Qtr | 172 Cr. | PAT Prev Qtr | 144 Cr. |
| RSI | 64.0 | MACD | 53.3 | Volume | 25,229 | Avg Vol 1Wk | 1,06,967 |
| Low price | 7,412 ₹ | High price | 11,505 ₹ | PEG Ratio | 4.34 | Debt to equity | 0.00 |
| 52w Index | 31.9 % | Qtr Profit Var | 36.9 % | EPS | 190 ₹ | Industry PE | 46.8 |
📈 Chart & Trend Analysis: Gillette is trading at ₹8,717, above its 50 DMA (₹8,316) but slightly below the 200 DMA (₹8,905). This indicates short-term strength but medium-term resistance overhead. RSI at 64.0 suggests the stock is approaching overbought territory, while MACD at 53.3 is strongly positive, confirming bullish momentum. Bollinger Bands show price near the upper band, signaling potential continuation but also caution for pullbacks.
📊 Volume Trends: Current volume (25k) is significantly lower than the 1-week average (107k), suggesting reduced participation and possible weakening of momentum despite bullish indicators.
🎯 Entry Zone: ₹8,500 – ₹8,650 (support near 50 DMA)
🚪 Exit Zone: ₹9,200 – ₹9,400 (resistance near 200 DMA and upper trendline)
🔎 Trend Status: Trending upward in the short term, but facing consolidation pressure near the 200 DMA. A breakout above ₹9,000 with volume confirmation could trigger further upside.
Positive ✅
- High ROCE (56.1%) and ROE (41.6%) reflect strong operational efficiency.
- Debt-free balance sheet (Debt-to-equity: 0.00).
- Quarterly PAT growth (₹172 Cr vs ₹144 Cr) shows earnings momentum.
- EPS of ₹190 supports valuation strength.
Limitation ⚠️
- High P/E of 45.8 compared to book value (₹357) indicates expensive valuations.
- PEG ratio of 4.34 suggests growth is not keeping pace with valuation multiples.
- Weak trading volume compared to average, limiting breakout strength.
Company Negative News 📉
- Decline in institutional holdings (FII -0.24%, DII -0.26%) indicates cautious sentiment.
Company Positive News 📈
- Quarterly profit growth of 36.9% shows strong performance.
- Consistent dividend yield of 1.38% adds shareholder value.
Industry 🌐
- Industry P/E at 46.8 suggests sector trades at premium valuations.
- Consumer goods sector benefits from steady demand and brand loyalty.
Conclusion 📝
Gillette is showing short-term bullish momentum with RSI and MACD supporting an upward trend, but volume weakness and resistance near the 200 DMA suggest caution. Entry near ₹8,500–₹8,650 offers margin of safety, while exits around ₹9,200–₹9,400 provide profit-taking opportunities. Fundamentally strong with high ROCE and debt-free status, but valuations remain stretched. Traders may play the short-term trend, while long-term investors should accumulate cautiously given premium pricing.
Would you like me to extend this into a basket overlay with peer benchmarking (comparing Gillette against FMCG peers like Colgate, Dabur, HUL) so you can see relative strength and sector rotation opportunities?