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.
P&G: Making a comeback - Views on News from Equitymaster
 
 
  • PRINT
  • E-MAIL
  • FEEDBACK
  • A  A  A
  • Aug 23, 2000

    P&G: Making a comeback

    Procter & Gamble Hygiene and Healthcare Ltd. (PGHH) has identified healthcare as its long-term business focus. The company’s leading brand Vicks (in existence for more than 100 years) however faces stiff competition in the market from D’Cold of Paras Pharmaceuticals and Coldarin.

    PGHH’s new country manger Gary Cofer has identified healthcare business for expansion in India. India is expected to become a major global sourcing base for healthcare products. This will help PGHH to get more research and product line in the healthcare segment from its parent P&G. P&G International markets its products in more than 140 countries of the world.

    PGHH’s topline growth is always boosted by value growth rather than volume. Vicks is also priced at a premium compared to its competitor’s products. However, the consumer confidence in the brand has remained intact which had helped Vicks to dominate the healthcare market with its incomparable product quality.

    PGHH has offlate shown a disappointing performance in terms of its brand image and sales growth. Currently Vicks contributes around 17% to total revenues of PGHH. As per the survey conducted by A&M/ORG MARG in 1999 Vicks Brand dropped to 14th position (from 8th position in 1998), which was its worst ever performance. The company had also suffered a volume drop after it affected an upward price revision last year. However, during the current year after several relaunches with an upgraded packaging the company has increased its sales growth of Vicks by 30%.

    It has changed the product packaging of Vicks (to prevent competition from spurious products) and introduced a new campaign to remain the leader in the segment. It has also launched Vicks Plus a new variant of Vicks Cough Drops, which is available in three flavours of orange, menthol and lemon. The product is priced at a slight premium to the existing range of Vicks Cough Drops. This new launch comes after a string of relaunches during the year such as new packaging for Vicks Vaporub, Vicks Action 500 and Vicks Cough Drops. India is the second market after Japan where this product is being launched.

    New packaging backed by a new advertising promotion and the efforts the company has put in, to create a brand will help it to maintain its leadership position. It will also lead to a positive growth in its revenue since PGHH's US based parent P&G has identified India among the top three markets in the world in the healthcare segment.

    At the current market price of Rs 667, PGHH is available at a P/E ratio of 22 times its FY01 projected earnings. Historically the company’s P/E has been in the range of 30-35 times.

     

     

    Equitymaster requests your view! Post a comment on "P&G: Making a comeback ". Click here!

      
     

    More Views on News

    P&G: Strong Core Growth (Quarterly Results Update - Detailed)

    Dec 9, 2016

    Procter & Gamble Hygiene and Health Care has announced the first quarter results of the financial year ended June 2017 (1QFY17). The company's sales rose by 12.5%YoY while net profit rose by 50.1% YoY during the quarter.

    P&G: Strong Core Performance (Quarterly Results Update - Detailed)

    Oct 5, 2016

    Procter & Gamble Hygiene and Health Care reported a 0.1% YoY growth in sales and a 2.2% YoY increase in net profits during the quarter ended June 2016.

    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.

    P&G: A Stable Quarter (Quarterly Results Update - Detailed)

    May 6, 2016

    Procter & Gamble Hygiene and Health Care reported an 11% YoY increase in revenues, while profits rose by 12% YoY during the quarter.

    P&G: Margins Go Through the Roof (Quarterly Results Update - Detailed)

    Feb 9, 2016

    Procter & Gamble Hygiene and Health Care reported an 11% YoY increase in revenues, while profits rose by 62% YoY during the quarter.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    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.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    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.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    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

    P&G HYGIENE SHARE PRICE


    Aug 18, 2017 (Close)

    TRACK P&G HYGIENE

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

    P&G HYGIENE 5-YR ANALYSIS

    Detailed Financial Information With Charts

    COMPARE P&G HYGIENE WITH

    MARKET STATS