Gillette India - New Engines Could Drive Stronger Growth: Nirmal Bang

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.A combination of-continued healthy growth in female grooming products,recent entry into electric shaving products/trimmers/ epilators,efforts to target influencers andpotential premiumisation in toothbrushes could transform the growth prospects of Gillette India Ltd.Our channel checks and customer surveys indicate healthy traction and brand recall in female grooming sub-segment.Our current estimates do not assume potential for double-digit sales growth if these new engines start firing simultaneously. Yet, price/earnings multiple is inexpensive at ~37 times FY25E earnings per share (June year ending)..Financials and valuationOur current estimates build in revenue compound annual growth rate of ~7.2% over FY23-FY25E - in line with the sales CAGR of the preceding five years. These numbers could move to double digits if the company’s recent initiatives, as discussed earlier, are successful. Our forecasts assume that as the decline in material costs continues, gross margin and Ebitda margin can revert to earlier levels. One year forward P/E multiple is near the lowest that the company has traded in its history post 30% plus decline in the stock price from its peak seen two years back. Return ratios are healthy, with return on capital employed of over 40%..Click on the attachment to read the full report:.Accenture Q3 Results Review - Confirms Weak H1 FY24 For Indian IT Industry: Nirmal Bang.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Gillette India - New Engines Could Drive Stronger Growth: Nirmal Bang

Our channel checks and customer surveys indicate healthy traction and brand recall in female grooming sub-segment.

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