Neutral Procter Gamble Hygiene Health Care; target of Rs 15,050: Motilal Oswal

Motilal Oswal recommended Neutral rating on Procter Gamble Hygiene Health Care with a target price of Rs15,050 in its research report dated May 10, 2023.

Broker Research

May 12, 2023 / 22:34 IST

Neutral

26 Aug, 2025 12:21

Volume

Todays L/H

Motilal Oswal's research report on Procter Gamble Hygiene Health Care

P&G Hygiene and Healthcare (PGHH) delivered a weak performance on all parameters in 3QFY23. Ad-spends mounted sequentially to 12.1% of sales from 9.7% (albeit, declined 50bp YoY) during the quarter. The company reversed income tax provision of INR575m pertaining to earlier years based on favorable ruling by the Income Tax Appellate Tribunal in a similar case. Adjusted for this, PAT decreased 4.9% YoY to INR1,075m v/s our expectation of INR1,516m.

Outlook

While we remain positive on the long-term growth potentials of the sanitary napkin and healthcare businesses, the uncertain pace of sales and earnings recovery as well as expensive valuations of 53xFY24E EPS/ ~44xFY25E EPS lead us to maintain our Neutral rating. We value the stock at 50x Mar’25E EPS to arrive at our TP of INR15,050.

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