X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Shaving Products – Inorganic growth to boost valuations - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • May 22, 2000

    Indian Shaving Products – Inorganic growth to boost valuations

    Among the FMCG companies, Indian Shaving Products (ISPL) enjoys a premium valuation due to its excellent quarter over quarter performance and distinct product quality.

    Consolidation to drive revenue growth
    With the merger of Duracell India and Wilkinson Swords, ISPL would be able to make inroads into the lower segment of the market. The company’s future appears positive as it has a strong presence in the fast growing segments such as flat-blades, toothbrushes and disposable twin blade razors. After the merger, ISPL is expected to get a better presence in both the lower-end flat blade segments with Wilkinson Sword brand and the disposable twin blade market with Wilman brand. To capitalise on the growing demand for its products, the company has plans to invest Rs 530 m. The proposed upgradation would be for the lower end blade segment. The mergers and the ongoing capacity expansion projects would enable the company to grow at a steady pace in future.

    Valuations
    At the current market price of Rs 1,122, ISPL is trading at a P/E of 74 times its FY99 earnings. In the past the company has enjoyed P/E in the range of 100-120. ISPL has always enjoyed premium valuations amongst FMCG companies because of its excellent growth potential and unique nature of its products. It is said about ISPL's products that its future becomes brighter every morning as all those males who go to sleep, grow beards in the night!

    The reason for its existing lower valuations is the recent merger with Duracell and Wilkinson. Profit margins of the company are expected to decline as a result of increasing costs. Also substantial promotional expenditure towards the launch of new products is likely to impact the operating profit margins.

    Given the brand leadership and initiatives taken by ISPL for upgrading consumer habits, the company is well positioned to take advantage of the growing market for twin blades. Further new products and innovations in existing products are expected to drive ISPL's revenue growth in time to come.

     

     

    Equitymaster requests your view! Post a comment on "Indian Shaving Products – Inorganic growth to boost valuations". Click here!

      
     

    More Views on News

    Marico: Earnings Hit by Lower Volumes and Firming Input Prices (Quarterly Results Update - Detailed)

    Aug 9, 2017

    While GST implementation brought down volumes and profitability in the short run, Marico remains optimistic in the long run.

    More Views on News

    Most Popular

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    More
    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
     

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms

    GILLETTE INDIA SHARE PRICE


    Aug 21, 2017 (Close)

    TRACK GILLETTE INDIA

    • Track your investment in GILLETTE INDIA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
    • Add To MyStocks

    MORE ON GILLETTE INDIA

    GILLETTE INDIA - HIND. UNILEVER COMPARISON

    Compare Company With Charts

    COMPARE GILLETTE INDIA WITH

    MARKET STATS