P&G - Structural Story Strong; Rich Valuation Limits Near Term Upside: 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.FY23 (June year ending) was a muted year for Procter and Gamble Hygiene and Healthcare Ltd., especially because of exceptionally high base of growth in Vicks in FY21 and FY22 and because of self-medication during Covid. Hence, there was ~6% decline in sales from this segment in FY23. Three-year compound annual growth rate in this segment (32% of sales in FY23) is still healthy at ~9.3%. Despite muted growth in FY23 (4%) in Feminine Hygiene business (68% of FY23 sales) because of inflation-led impact affecting conversion from cloth to sanitary napkins, it still has notched a healthy ~10% revenue CAGR in the last three years and healthy double-digit sales track record in the past. The two recent quarters (Q4 FY23 and Q1 FY24) have also seen an uptick in sales momentum at ~13% YoY and 9% YoY, respectively.As highlighted in our initiating coverage note and analyst meet note, the structural investment case remains strong. We have an 'Accumulate' rating on P&G as near term valuation seems fair after a ~25% run-up post our initiating coverage note in June 2023..Click on the attachment to read the full report:.Bharat Dynamics - Pick-Up In Execution May Lead To An Upside In Revenue: ICICI Securities.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.

P&G - Structural Story Strong; Rich Valuation Limits Near Term Upside: Nirmal Bang

‘Best of breed’ return ratios and dividend payout, fair valuation of ~60 times FY25E has led us to maintain 'Accumulate' on P&G.

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