Brokerage house Firstcall Research is bullish on Gillette India and has recommended buy rating on the stock with a target price of Rs 4515 in its research report dated February 25, 2015.
Firstcall Research's report on Gillette India
"Gillette India Limited reported 16.75% rise in Net Sales in its second quarter Dec results. Net Sales stood at Rs. 4984.70 million compared to Rs. 4269.70 million in corresponding quarter of previous year. Growth in sales was seen across all business segments – Grooming (13%), Oral Care (26%) & Portable Power (29%). The company reported Operating Profit or EBDITA of Rs. 723.20 million in Q2 FY15 compared to Rs. 255.70 million in Q2 FY14. In the same December quarter of FY15, Profit after Tax Jumps to 233.88% y-o-y of Rs. 368.60 million compared to Rs. 110.40 million in the same period previous year. Net profit of the company has shown a three digit growth performance behind productivity driven cost savings and operational excellence. For the six months ended of FY15, the company registered a growth of 15.21% in Net sales to Rs. 9384.50 million from Rs. 8145.70 million for the six months ended of FY14. Net profit grew by 108.33% to Rs 545.40 million for the end of 6M FY15 from Rs 261.80 million for the end of 6M FY14.Gillette, Oral-B & Duracell have strong brand recall & command significant market share in their respective categories. Thus, we recommend ‘BUY’ on the stock with a target price of Rs 4515 for medium term investment", says Firstcall Research Report.
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