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Check Before You Invest : Procter & Gamble Hygiene and Health Care Ltd

BSE: 500459 NSE: PGHH ISIN: INE179A01014
  |   Sector:  FMCG   |   Industry:  Household & Personal Products

Snapshot

Q.1 Which industry/sub-sector does Procter & Gamble Hygiene and Health Care Ltd belong to?
Procter & Gamble Hygiene and Health Care Ltd belongs to the FMCG sector, operating specifically within the Household & Personal Products segment.
Q.2 Is Procter & Gamble Hygiene and Health Care Ltd a good quality company?
Procter & Gamble Hygiene and Health Care Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Procter & Gamble Hygiene and Health Care Ltd undervalued or overvalued?
Procter & Gamble Hygiene and Health Care Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 37.51 75.04
Price to Book 26.15 50.53
Price to Sales 7.44 12.19
EV to EBITDA 25.95 50.81
Q.4 Is Procter & Gamble Hygiene and Health Care Ltd a good buy now?
Procter & Gamble Hygiene and Health Care Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Procter & Gamble Hygiene and Health Care Ltd?
Procter & Gamble Hygiene and Health Care Ltd revenue growth is 7% for FY-2025, which is below its 5-year CAGR of 8.43%, indicating slower growth.

Q.2 Gross Profit margin of Procter & Gamble Hygiene and Health Care Ltd?
Procter & Gamble Hygiene and Health Care Ltd Gross profit margin which is the profit after deduction of direct costs, is 21.3% for FY-2025, which is above its 5-year median of 19.7%, indicating increasing margins.

Q.3 Operating Profit Margin of Procter & Gamble Hygiene and Health Care Ltd?
Procter & Gamble Hygiene and Health Care Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 25.91% for FY-2025, which is above its 5-year median of 22.93% indicating increasing margins.

Q.4 Net Profit Margin of Procter & Gamble Hygiene and Health Care Ltd?
Procter & Gamble Hygiene and Health Care Ltd Net Profit Margin is 18.87% for FY-2025, is above its 5-year median of 17.31%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 21.3 19.7
Operating Profit Margin (%) 25.91 22.93
Net Profit Margin (%) 18.87 17.31

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Procter & Gamble Hygiene and Health Care Ltd?
Procter & Gamble Hygiene and Health Care Ltd Return on Asset is 36.84%, which is in line with its 5-year historical median of 36.63%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Procter & Gamble Hygiene and Health Care Ltd?
Procter & Gamble Hygiene and Health Care Ltd Return on capital employed is 115.95% for FY-2025, which is above its 5-year historical median of 110.39%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of Procter & Gamble Hygiene and Health Care Ltd?
Procter & Gamble Hygiene and Health Care Ltd Return on equity is 90.52% for FY-2025, which is above its 5-year historical median of 83.56%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Procter & Gamble Hygiene and Health Care Ltd?
Procter & Gamble Hygiene and Health Care Ltd Cash conversion cycle is -83 days, below its 5-year historical median of -74 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 2.43 2.52
ROE (%) 90.52 83.56
ROCE (%) 115.95 110.39
Cash Conversion Cycle -83 days -74 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Procter & Gamble Hygiene and Health Care Ltd?
Procter & Gamble Hygiene and Health Care Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.10, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Procter & Gamble Hygiene and Health Care Ltd?
Procter & Gamble Hygiene and Health Care Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Procter & Gamble Hygiene and Health Care Ltd?

Q.1 Promoter shareholding and pledge status of Procter & Gamble Hygiene and Health Care Ltd?
Promoters hold 70.64% of the Procter & Gamble Hygiene and Health Care Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Procter & Gamble Hygiene and Health Care Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Procter & Gamble Hygiene and Health Care Ltd vs industry peers?
Procter & Gamble Hygiene and Health Care Ltd revenue CAGR is 8.43%, compared to the industry median CAGR of 7.66%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 7 7.7
Gross Profit Growth (%) -10.2 6.9
Operating Profit Growth (%) -8.9 7.6
Net Profit Growth (%) -5.6 8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 2.43 1
ROE (%) 90.52 74.4
ROCE (%) 115.95 98.37
Cash Conversion Cycle (days) -83.17 -42

Valuation & price assessment

Q.1 Stock return of Procter & Gamble Hygiene and Health Care Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 4.4% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
4.4% -6.2% -10.4% -28.7%
Q.2 Valuation ratios of Procter & Gamble Hygiene and Health Care Ltd vs historical?
The current P/E ratio of 37.51 is lower than its historical median of 75.04, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 37.51 75.04 44.15
Price to Book 26.15 50.53 3.71
Price to Sales 7.44 12.19 4.58
EV to EBITDA 25.95 50.81 23.48

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