Buy Procter & Gamble Hygiene & Healthcare, target price Rs 15,530: Motilal Oswal

Motilal Oswal has buy call on Procter & Gamble Hygiene & Healthcare with a target price of Rs 15530. The current market price of Procter & Gamble Hygiene & Healthcare Ltd. is Rs 12948.

Time period given by analyst is one year when Procter & Gamble Hygiene & Healthcare price can reach defined target.

Procter & Gamble Hygiene & Healthcare Ltd., incorporated in the year 1964, is a Large Cap company (having a market cap of Rs 41829.72 Crore) operating in FMCG sector.


Financials
For the quarter ended 31-03-2021, the company reported a Standalone Total Income of Rs 774.41 Crore, down -24.65 % from last quarter Total Income of Rs 1027.79 Crore and up 15.49 % from last year same quarter Total Income of Rs 670.57 Crore. Company reported net profit after tax of Rs 98.33 Crore in latest quarter.

Investment Rationale
While valuations at 44.3x FY23E EPS are in line with staples peers, PGHH has a stronger topline and earnings track record, best-of-breed structural earnings growth potential, and strongly improving RoEs that deserve premium multiples. The brokerage maintains BUY rating, with TP of INR15,530/share (targeting 50x Sep’23E EPS).

Promoter/FII Holdings
Promoters held 70.6 per cent stake in the company as of June 30, 2021, while FIIs held 2.5 per cent, DIIs 13.6 per cent and public and others 13.3 per cent.