Add Gillette India, target price Rs 6090: Yes Securities

Yes Securities has add call on Gillette India with a target price of Rs 6090. The current market price of Gillette India is Rs 5534.

Gillette India, incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 18023.05 Crore) operating in FMCG sector.

Gillette India key Products/Revenue Segments include Personal Care for the year ending 30-Jun-2022.


Financials
For the quarter ended 30-06-2023, the company has reported a Standalone Total Income of Rs 624.22 Crore, down -1.05 % from last quarter Total Income of Rs 630.84 Crore and up 12.59 % from last year same quarter Total Income of Rs 554.41 Crore. Company has reported net profit after tax of Rs 91.75 Crore in latest quarter.

Investment Rationale
The brokerage's view is pinned on the following arguments: (1) Expect core portfolio to improve or atleast maintain share with potentiality of stronger growth led by part reversal in trend towards clean shave (2) Women’s razor & shave care portfolio offers delta through penetration led growth (3) We hope GILL’s brand equity & global expertise to help play catch-up in electric segment where it has been a laggard (4) Global mix and margin profile shows potential for Gillette’s India grooming business (5) Latest quarter’s performance suggest improving growth (6) Even after recent run-up (up ~25% in last 3 months), valuations remain lower than median.

Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of 30-Jun-2023, while FIIs owned 0.66 per cent, DIIs 11.29 per cent.