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Change Change %
-71.90 -0.83%

Updated:23 Oct, 2017, 15:53 PM IST

Change Change %
-81.65 -0.94%

Updated:23 Oct, 2017, 15:55 PM IST

Research Report Detail

Report Date Call Price@Call Target Price
Stop Loss
Current Status Time Horizon
Motilal Oswal
24-08-2017 Hold 8122.00 8800.00
Target Hit Long (1Y)

Motilal Oswal downgrades P&G Hygiene and Healthcare to neutral

Two factors make P&G Hygiene and Healthcare (PGHH) a highly attractive long term core holding (1) Huge category growth potential in the feminine hygiene segment (around 70% of sales) and potential for market share growth because of its considerable moats, a combination of which we believe is unsurpassed by other consumer peers and (2) Potentially huge margin gains from premiumization over the longer term in feminine hygiene. With the payout of the huge cash pile, ROCEs have more than doubled and an investor concern has been addressed. Nevertheless near term valuations will look expensive because of the lower other income in FY18/FY19 compared to earlier years. While PGHH remains one of our top long term picks, valuations of 46.3xFY19 EPS do not leave much room for upside over a 1 year horizon leading to downgrade to Neutral.

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