Procter & Gamble Hygiene & Health Care - 3QFY2016 Result Update - Angel Broking

Procter & Gamble Hygiene and Health Care (P&G)'s 3QFY2016 results are broadly in-line with our estimates. For the quarter, the company's top-line grew by ~11% yoy to Rs. 614cr while the reported PAT grew ~12% yoy to Rs. 97cr.

Key highlights

For 3QFY2016, the company's top-line grew by ~11% yoy to ~Rs. 614cr (against our estimate of ~Rs. 624cr), mainly due to growth in both female hygiene and health care segment. On the operating front, the company reported margin contraction by 41bp yoy to 21.7%, primarily on account of higher other expenses. The reported net profit grew by ~12% yoy to ~Rs. 97cr (our estimate was of ~Rs. 98cr) on account of healthy sales growth.

Outlook and valuation

On the top-line front, we expect the company to report ~13% CAGR and on the bottom-line front, we expect ~15% CAGR over FY2015-18E on the back of strong brands and distribution network. Further, P&G is a market leader in both of its product, ie Whisper (female hygiene segment) and Vicks (healthcare segment ointment, creams, cough drops etc). We are positive on the stock and recommend a Buy rating with a target price of Rs. 7,369.

Shares of PROCTER & GAMBLE HYGIENE & HEALTH CARE LTD. was last trading in BSE at Rs.6199.25 as compared to the previous close of Rs. 6404.35. The total number of shares traded during the day was 974 in over 218 trades.

The stock hit an intraday high of Rs. 6325 and intraday low of 6140. The net turnover during the day was Rs. 6073485.

Source : Equity Bulls

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