1. At a Glance
₹8,615 crore market cap. Stock at ₹5,190. Down ~11% in 3 months, ~18% in 6 months — which is ironic because the business itself is jogging at a decent pace while the stock is tying its shoelaces in public. Q3 FY26 revenue came in at ₹374 crore (+20.7% YoY), but PAT slipped 14.6% YoY to ₹77.6 crore. ROCE is a spicy 47.8%, ROE a smug 36.4%, debt is basically missing (₹6.2 crore), and dividend yield is a very real 2.41%.
This is a vitamins–minerals–supplements (VMS) cash machine with brands your parents, doctor, chemist, and neighbourhood uncle all recognize. But the stock? It’s priced like a luxury SUV in a traffic jam. Let’s open the bonnet.
2. Introduction – The Quiet OTC Emperor
P&G Health is that rare Indian pharma company that doesn’t shout about APIs, ANDAs, USFDA inspections, or China-plus-one drama. It just sells Evion, Neurobion, Seven Seas, Livogen, Nasivion—and quietly mints money.
This is not a growth-at-any-cost startup. This is a mature, boring, dividend-spitting consumer healthcare play. The kind your CA uncle secretly loves but won’t admit on Twitter.
But here’s the twist: despite strong brands and insane returns on capital, sales growth over 5 years is basically flat. The company is profitable, disciplined, and cash-rich—but also conservative to a fault. So the big question: is this a defensive compounder… or a beautifully maintained museum?
3. Business Model – WTF Do They Even Do?
Think of P&G Health
as a chemist-shop king, not a hardcore pharma innovator.
- Core focus: Vitamins, Minerals & Supplements (VMS)
- These are OTC / prescription-lite products
- Brands are decades old and doctor-recommended
- Demand is steady, repeat-driven, and recession-resistant
Manufacturing happens at one Goa plant, which the company is actively optimizing. In FY23, P&G Health shut down in-house injection manufacturing and shifted to contract manufacturing. Translation: “Why sweat when someone else can?”
In FY23, they also changed their distribution model—moving from C&F agents to a distributor-led setup. Short-term pain, long-term control. Classic MNC playbook.
Does this business scale explosively? No.
Does it throw cash like a wedding baraat? Yes.
4. Financials Overview (Quarterly Results)
Quarterly Comparison Table (₹ crore)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 374 | 310 | 325 | 20.7% | 15.1% |
| EBITDA | 110 | 123 | 120 | -10.6% | -8.3% |
| PAT | 78 | 91 | 89 | -14.6% | -12.4% |
| EPS (₹) | 46.7 | 54.8 | 53.3 | -14.7% | -12.4% |
Annualised EPS (Q1–Q3 Avg): ~₹177
Recalculated P/E: ₹5,190 / ₹177 ≈ 29.3x
Margins dipped this quarter due to cost normalization and royalty expenses. But structurally? This thing still prints money.
5. Valuation
