At a Glance
Procter & Gamble Hygiene & Health Care (PGHH) delivered a blockbuster Q1 FY26: PAT up 137% YoY to ₹192 Cr, riding on stronger margins despite flat revenue. The market applauded, pushing the stock 6% higher to ₹13,885. With ROCE at 112% and ROE at 79%, this FMCG beast is printing cash – but at a P/E of 54x, you’re paying luxury prices for sanitary pads and cough drops.
Introduction
Meet the FMCG player where “boring” products print exciting profits. PGHH sells Whisper, Vicks, and Old Spice – a trio that dominates Indian bathrooms and medicine cabinets. The Q1 results turned heads: profits soared, margins fattened, and investors temporarily forgot the nosebleed valuations. But sales growth is crawling (1% YoY), meaning this isn’t a growth rocket – it’s a cash cow in a tuxedo.
Business Model (WTF Do They Even Do?)
- Products: Feminine hygiene (Whisper), OTC healthcare (Vicks), grooming (Old Spice).
- Revenue Stream: Branded packaged FMCG with premium pricing power.
- Moat: Strong brand recall, high entry barriers, global P&G backing.
- Market Position: Duopoly-like dominance in sanitary and OTC healthcare.
PGHH doesn’t need fancy innovation – its brands are already household names. You sneeze, you grab Vicks. You sweat, Old Spice. You blink, Whisper runs ads.
Financials Overview
Q1 FY26 Snapshot
- Revenue: ₹937 Cr (+1% YoY)
- EBITDA: ₹266 Cr (OPM 28%)
- PAT: ₹192 Cr (+137% YoY)
- EPS: ₹59.2
FY25 Recap
- Revenue: ₹4,206 Cr
- PAT: ₹675 Cr
- ROE: 78.9%
- ROCE: 112%
Commentary: Revenue growth is sluggish, but margins and profits are flexing like a gym rat on steroids.
Valuation
- P/E Method
- EPS (TTM): ₹255
- Industry P/E: ~45x
- Fair Value ≈ ₹255 × 45 = ₹11,475
- P/B Method
- Book Value: ₹291
- CMP/BV: 48x (insane)
- Fair Value ≈ ₹9,000–₹11,000
- DCF (Cough Drops Future Discounted)
- Modest 8% growth, 12% discount → ₹12,000–₹13,500
🎯 Fair Value Range: ₹11,500 – ₹13,500
CMP ₹13,885 is at the premium band.
What’s Cooking – News, Triggers, Drama
- Dividends: 100% payout – cash machine.
- Leadership Changes: Re-appointment of two independent directors, adding stability.
- Triggers: New product launches, ad spend ramp-up, rural penetration.
- Threat: Slow sales growth, sky-high valuation.
Balance Sheet
| (₹ Cr) | Jun 2025 |
|---|---|
| Assets | 2,097 |
| Liabilities | 1,149 |
| Net Worth | 913 |
| Borrowings | 3 |
Remarks: Debt-free, cash-heavy – basically the FMCG monk with fat bank accounts.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 573 | 826 | 471 |
| Investing | -27 | -10 | 1 |
| Financing | -569 | -477 | -862 |
Remarks: Operating cash king, financing outflows reflect juicy dividends.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 79% |
| ROCE | 112% |
| P/E | 54x |
| PAT Margin | 23% |
| D/E | 0.0 |
Remarks: Ratios hotter than Whisper ads – but expensive AF.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 3,901 | 4,206 | 4,311 |
| EBITDA | 832 | 976 | 1,137 |
| PAT | 576 | 675 | 829 |
Remarks: Profit compounding, sales crawling.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Dabur India | 12,563 | 1,733 | 53x |
| Colgate | 5,978 | 1,393 | 44x |
| Gillette India | 2,880 | 534 | 65x |
| PGHH | 4,311 | 829 | 54x |
Remarks: PGHH is priced like a luxury brand in FMCG clothing.
Miscellaneous – Shareholding, Promoters
- Promoters (P&G): 70.6%
- FIIs: 1.4%
- DIIs: 15.5%
- Public: 12.5%
Observation: Low float keeps the stock pricey and stable.
EduInvesting Verdict™
PGHH is the FMCG equivalent of a Swiss watch – not cheap, not fast-growing, but ultra-reliable and classy. Profits are soaring, dividends rain down like monsoon, and ROE is sky-high. However, sales growth is crawling, making valuation a tightrope.
SWOT Quickie
- Strengths: Iconic brands, zero debt, fat margins.
- Weaknesses: Sluggish top-line growth, insane P/B.
- Opportunities: Rural expansion, OTC innovations.
- Threats: Price wars, regulatory interventions, valuation risk.
Final Word: For long-term collectors of quality, it’s a keeper. For bargain hunters, wait for a sneeze-induced dip below ₹12,500.
Written by EduInvesting Team | 30 July 2025
SEO Tags: P&G Hygiene Q1 FY26 Results, Whisper Vicks Stock Analysis, FMCG Premium Stocks
