Mehabe score: 5 G Factor: 4 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 6.
Description
Gillette India Limited is a public company incorporated under the provisions of the Companies Act 1956. The company is engaged in manufacturing and selling of packaged fast moving goods under its various brands in the grooming and oral care segment.
Main Points
Portfolio of well known Brands
Gillette has a bouquete of well recognised brands under which it sells its various products. Fusion5, SkinGuard Sensitive, MACH3, Guard3, Styler & Presto. #Site:GILLETTEMain Symbol:GILLETTE
Stock trades at 5930.0, above its 50dma 5857.76. It also trades above its 200dma 5700.5. The stock remains bullish on techicals
The 52 week high is at 6730.15 and the 52week low is at 5011.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has a good return on equity (ROE) track record: 3 Years ROE 32.96%
– has been maintaining a healthy dividend payout of 52.93%
Weakness
– Stock is trading at 24.49 times its book value
-The company has delivered a poor sales growth of -2.18% over past five years.
Competition
– The industry trades at a mean P/E of 59.6x. Hind. Unilever trades at the industry’s max P/E of 74.5x. GILLETTE trades at a P/E of 59.0x
– Industry’s mean G-Factor is 4.0 while the mean Piotski score is 7.0. GILLETTE has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 0.7%. The max 1- month return was given by Hind. Unilever: a return of 11.66 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 436.0 cr compared to Rs 351.0 cr for period ended Jun 2020, a rise of 24.2%
Operating Profits reported at Rs 52.0 cr for period ended Jun 2021 vis-vis 81.0 for period ended Jun 2020 .
Operating Margins contracted -1115.0 bps for period ended Jun 2021 vis-vis Jun 2020 .
The EPS for Jun 2021 was Rs 8.45 compared to Rs 32.43 for previous quarter ended Mar 2021 and Rs 13.8 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2009.0 cr for period ended Jun 2021 vis-vis sales of Rs 1679.0 cr for the period ended Jun 2020, a healthy growth of 16.4%. The 3 year sales cagr stood at 6.2%.
Operating margins expanded to 23.0% for period ended Jun 2021 vis-vis 21.0% for period ended Jun 2020, expansion of 200.0 bps.
Net Profit reported at Rs 310.0 cr for period ended Jun 2021 vis-vis sales of Rs 230.0 cr for the period ended Jun 2020, rising 25.8%.
Company recorded a healthy Net Profit CAGR of 10.6% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 27.0% compared to 33.0% over the last 3 Years. – The stock has given a return of 11% on a 1 Year basis vis-vis a return of -3% over the last 3 Years. – The compounded sales growth on a TTM bassis is 7% vis-vis a compounded sales growth of -1% over the last 3 Years. – The compounded profit growth on a TTM basis is 42% vis-vis a compounded profit growth of -3% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 2.08% vis-vis 2.04% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 12.25% vis-vis 12.27% for Mar 2021
Conclusion
– is almost debt free.
– has a good return on equity (ROE) track record: 3 Years ROE 32.96%
– has been maintaining a healthy dividend payout of 52.93% – Stock is trading at 24.49 times its book value
-The company has delivered a poor sales growth of -2.18% over past five years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 5857.76 and is trading at 5930.0, thus bullish price action wise.
