Procter and Gamble Hygiene and Health Care (P&G) is one of the largest and fastest growing consumer goods companies in India. It deals in manufacturing and selling of fast moving consumer goods (FMCG) in the healthcare and feminine care products.
P&G Market Capitalisation
The market capitalisation of the company, as of March 2018, is more than Rs.30,560 crore.
P&G’s Wealth and Recent PerformanceQ3 FY 2017-18
- For the quarter ended on March 31, 2018, Procter and Gamble Limited reported its revenue from operations to be at Rs.568.89 crore. In comparison to the March quarter of the previous financial year, this marked a drop of a little over Rs.30 crore. The company’s total income for the Q3 FY 2017-18 was reported to be Rs.575.5 crore, in comparison to Rs.624.2 crore for the same period last year.
- On a y-o-y basis, the company’s total expenses came down from Rs.462.9 crore to Rs.449.1 crore. The company reported its profit before tax for the quarter to be at Rs.126.3 crore. For the March quarter of the previous financial year, the profit before tax was reported to be at Rs.161.3 crore.
- The company reported a net profit after tax of Rs.83.2 crore, as against Rs.99.6 crore reported for the same period, last year. For the nine months ended March 31, 2018, Procter and Gamble Limited has reported a net profit of Rs.331.9 crore.
- The company’s basic earnings per share (EPS) for the quarter has dropped down from Rs.30.69 to Rs.25.64, y-o-y. With respect to the quarter ended on December 31, 2017, the basic EPS came down from Rs.40.43.
P&G Stock Trends in 2018
- The opening price of P&G share on January 1, 2018 was above Rs. 9,485 on NSE. It didn’t change much by the end of the month. However, the share price suffered a setback in early February 2018 as it declined to around Rs.8,880.
- By the end of February 2018, the share price was close to Rs.9,420.
- On March 1, the opening share price of Procter and Gamble Hygiene and Healthcare Limited was Rs.9,392 on the NSE. Over the course of the month, the shares didn’t make any discernible gains and the stock price varied at levels close to Rs.9,300. In the final week of the month, the share price rose marginally to cross the Rs.9,500 mark.
- On April 2, the P&G stock price was Rs.9,565 on the NSE. The shares gained marginally in the first two weeks to cross the Rs.9,700 mark. For the remainder of the month, the shares were traded at levels varying from Rs.9,500 - Rs.9,700. In the first half of May, however, the prices dipped marginally to reach their previous levels at Rs.9,200.
- For the rest of May, the Procter & Gamble stock price remained below the Rs.9,300 mark. At the start of June, the shares commenced a bull run which led to the investors make excellent gains from the scrip. The rise helped the shares cross the psychologically important mark of Rs.10,000 in July and eventually, they reached their 52-week high at Rs.11,337 on the NSE.
- Through the course of August, the Procter and Gamble shares maintained their bearings at levels close Rs.10,500. In September, however, the prices fell once again and the shares soon descended back to their previous levels at Rs.10,000. As of September 20, the shares were seen trading at levels close to Rs.9,700.
P&G Stock Trends in 2016 and 2017
- The share price on January 1, 2016 was close to Rs.5,631 on both NSE and BSE. By the end of March 2016, the price soared to around Rs.6,200.
- The net profit in Q3 FY2016 was up 12% that helped increase the share price to around Rs.6.500
- As the company announced results for Q4 by the end of August, the share price for NSE increased to around Rs.6,730 and it reached Rs.7,000 by mid October.
- At the beginning of December 2016, the share price was close to Rs.6,700 thanks to an increase in the profit.
- The share price was around Rs.7,000 on January, 1 2017. It kept increasing by the end of February owing to an increase of 2.8% in net profit Q2.
- By the end of March, the share price had soared close to Rs.7,500 and hit Rs.8,000 mark during mid June.
- The share price was close to Rs.8,200 in August, as the company announced dividend. It continued to increase till October where the share price was more than Rs.8,600.
- By the end of November, the share price crossed the Rs.9,000 mark and at the end of December 2017, the share price had reached Rs.9,400.
Should you invest in P&G?
The share price for P&G has been consistently growing since 2016. The company has been present in India over several decades and has made its mark in the FMCG sector. The short-term revenue growth of P&G has received a hit as it has been de-prioritising several unprofitable lines of business in India. However, this global strategy has helped the company to be more profitable. Investing in the company for a longer period of time could be a good option.
P&G has a strong foothold in various segments like the beauty and personal grooming, household care as well as health and well being segment across India. Currently, the company operates under three entities in India viz, Procter & Gamble Hygiene and Health Care Limited” and ‘Gillette India Limited’. The third one - Procter & Gamble Home Products’ is 100% subsidiary of the parent company in the US.
History of the Company
Established in 1964 in India, P&G company is headquartered in Mumbai. The company acquired Richardson-Vicks Inc. in 1985 and consequent to this, Richardson Hindustan Ltd. (RHL), became an affiliate of Procter & Gamble Co. From April 4, 1988, the name of the company was changed to Procter & Gamble India Ltd., from Richardson Hindustan Ltd. In the same year, the company name was changed to "Procter & Gamble Hygiene and Health Care Ltd. as it represented the nature and character of the business in a better way. The company introduced Whisper Ultra, Vicks Plus Medicated Lozenges and re launched Vicks Action 500+ in 2000. Head & Shoulders, Pantene, Whisper, Tide, Olay, Ariel are some of the important brands that were launched in India.
Madhusudan Gopalan - MD and Executive Director
Madhusudan Gopalan will replace AI Rajwani as the Managing Director & CEO of P&G India from April 1. He is an alumnus of IIM Kolkata and has over 18 years of experience working with P&G with several units. Madhusudan has been associated with P&G since 1999 and has worked in diverse geographies like India, the US and ASEAN countries.
Prashant Bhatnagar - CFO and Director
Prashant Bhatnagar has been (CFO) Chief Financial Officer at Procter & Gamble Hygiene and Health Care Limited since October 2014. He has been its Director since October 13, 2016.
P&G Listings in NSE, BSE and Indices
The stocks of Procter and Gamble Hygiene and Health Care can be bought and sold on the two major stock exchanges in the country - National Stock Exchange and Bombay Stock Exchange. The codes for the same are mentioned below.
BSE - 500459
NSE - PGHH
ISIN - INE179A01014
Sector - Personal Care
P&G forms a part of different indices and they are mentioned below:
- Nifty 100
- Nifty 200
- Nifty Next 50
- Nifty FMCG
- Nifty 500
- S&P BSE 200
- S&P BSE 500
Procter & Gamble, India P&G plaza,
Cardinal Gracias Road, Chakala, Andheri (E),
Mumbai - 400099
Office: (91-22) 2826 6000
Stocks vs. Mutual Funds: here's what we recommend
Stock market investments require a lot of research and knowledge. They do not generally offer any tax benefits and are regarded as high-risk investments. Hence,it is crucial to have a diversified portfolio. At Bankbazaar, we encourage our readers to invest on mutual funds.It doesn't require a lot of knowledge and equity linked mutual fund schemes offer tax benefits. Additionally, since mutual funds comprise stocks from multiple companies, they help in building a diversified portfolio.