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Procter & Gamble Hygiene & Health Care Ltd. Stock Analysis

Large Cap
Evaluated by 2832 users | BSE: 500459 | NSE: PGHH |
Household & Personal Products
P&G Hygiene and Health Care is one of India's fastest growing Fast Moving Consumer Goods Companies incorporated on 20th July 1964. Earlier known as Richardson Hindustan (RHL), in 1964 company received Industrial License to undertake manufacture of Menthol and de-mentholised peppermint oil...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Procter & Gamble Hygiene & Health Care Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Jun'10Jun'11Jun'12Jun'13Jun'14Jun'15Jun'16Jun'17Jun'18Jun'19
Return on Capital Employed 37.16%26.71%28.89%27.81%34.09%32.19%29.89%40.94%58.25%49.82%
Value Creation Index 2.241.171.281.191.691.541.362.233.602.93
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 9041,0031,2971,6872,0512,3342,2752,3202,4552,947
Y-o-Y Gr. Rt.-10.9%29.4%30%21.6%13.8%-2.5%2%5.8%20%
Adjusted EPS (Rs.) 55.7946.757.7364.3693.78109.43131.28135.09118.32130.38
Y-o-Y Gr. Rt.--16.3%23.6%11.5%45.7%16.7%20%2.9%-12.4%10.2%
Book Value per Share (Rs.) 164.7185.03214.74248.1308.96378.52507.78159.65244.05274.67
Adjusted Net Profit 181152187209304355426439384423
Net Op. Cash Flow (Rs. Cr.) 239118180104335426352445415412
Debt to Cash Flow from Ops 0000000000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Procter & Gamble Hygiene & Health Care Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 14%7.5%9%20%
Adjusted EPS 9.9%6.8%-0.2%10.2%
Book Value per Share 5.9-2.3-18.512.6
Share Price 20.4% 10.8% 6% -13.9%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Jun'10Jun'11Jun'12Jun'13Jun'14Jun'15Jun'16Jun'17Jun'18Jun'19
Return on Equity (%) 37.1626.7128.8827.8133.6731.8429.5940.2757.6949.37
Operating Profit Margin (%) 25.6416.516.0715.3120.6721.2726.852925.6220.88
Net Profit Margin (%) 20.0215.1214.4412.3914.8415.2218.7318.915.6414.36
Debt to Equity 0000000000
Working Capital Days 22126826820215214513310710695
Cash Conversion Cycle -48-45-36-22-14-26-40-32-42-38
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 70.64%
Institutions 15.96%
Non-Institutions 13.40%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Procter & Gamble Hygiene & Health Care Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Procter & Gamble Hygiene & Health Care Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Procter & Gamble Hygiene & Health Care Ltd.'s performance infers:

Procter & Gamble Hygiene & Health Care Ltd. earnings have grown by 6.8%, whereas share price has appreciated 10.8% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Procter & Gamble Hygiene & Health Care Ltd. share prices over the last 10 years. Here is what we found out:

Procter & Gamble Hygiene & Health Care Ltd. share price has appreciated 17.2% annually over the past ten years.

P&G Hygiene and Health Care is one of India's fastest growing Fast Moving Consumer Goods Companies incorporated on 20th July 1964. Earlier known as Richardson Hindustan (RHL), in 1964 company received Industrial License to undertake manufacture of Menthol and de-mentholised peppermint oil and VICKS range of products such as Vicks VapoRub, Vicks Cough Drops and Vicks Inhaler.

Later in the year 1967 RHL introduced CLEARASIL, back then America's number one

P&G Hygiene and Health Care is one of India's fastest growing Fast Moving Consumer Goods Companies incorporated on 20th July 1964. Earlier known as Richardson Hindustan (RHL), in 1964 company received Industrial License to undertake manufacture of Menthol and de-mentholised peppermint oil and VICKS range of products such as Vicks VapoRub, Vicks Cough Drops and Vicks Inhaler.

Later in the year 1967 RHL introduced CLEARASIL, back then America's number one pimple cream. In 1985 RHL became affiliate of The Procter & Gamble Company, USA.

In 1989 the name of the company was changed to Procter & Gamble India and launched sanitary napkin under the name Whisper bringing a sudden change in Indian feminine hygiene category.

In June 2002, Procter & Gamble Hygiene & Health Care announced the launch of New Improved Vicks VapoRub – India’s Number One Cold Rub – that provides multi-symptom relief from the six symptoms of a child’s cold, namely – blocked nose, cough, body ache, headache, muscle-stiffness and breathing difficulty.

In July 2002, Procter & Gamble announced the launch of Vicks Action500+ Night tablets, a specially designed cold medicine that gives consumers multi-symptom relief from bothersome cold symptoms like headache and breathing difficulty, hence allowing restful sleep at night.

In October 2002, India’s number one cough and cold brand – Vicks – celebrated its 50th Year in India and launched Dual Golden Jubilee Offers to reward Indian consumers for 50 Years of trust and loyalty.

Globally Procter & Gamble owns brands like Duracell, Olay, Tide, Gillette, Braun, Pringles, Lacoste, Puma, Oral-B, HUGO, Mr.Clean, Cover Girl, Pantene Pampers ,Old spice are amongst others. Currently P&G Hygiene and Health has portfolio of brands such as Vicks & Whisper.

Products

Vicks- It is India’s No.1 Cough and Cold Brand. It created the cold & cough over-the-counter (OTC) category in India way back in 1952 and has led the category till date. Under this brand it has introduced products namely Vicks Action500+, Vicks VapoRub, Vicks Cough Drops, Vicks Formula 44 Cough Syrup and Vicks Inhaler.

Whisper- Under this it has introduced products for feminine hygiene. It has introduced products such as Whisper Maxi Regular, Whisper Maxi XL Wings, Whisper Ultra with Wings and Whisper Choice.

Awards and recognition

Vicks was rated as ‘India’s Most Trusted Brand’ by the ‘Advertising & Marketing’ Magazine

P&G Hygiene and Health Care was voted India's Best Employer 2003 in a survey of 200 companies conducted by International HR Consultancy Hewitt Associates in association with Business Today magazine.

 

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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