FMCG Stock Below COVID Low PE: Gives 8-Year Highest Dividend with Record FII Holding Over 4%!
Recently, the company announced its highest interim dividend since 2017, amounting to Rs 65 per share.
The recent correction in the Indian stock market has brought valuations down from their previous highs, creating an opportunity where many stocks are now trading at attractive levels, offering valuation comfort.
One such stock is Gillette India Ltd. (GIL), a well-known FMCG company with globally recognized brands like Gillette, Oral-B, Venus, and Braun. Renowned for its premium product offerings, the company has also built a reputation for its consistent dividend payouts. Apart from its iconic razor brand, Gillette is also known for rewarding shareholders with dividends. Recently, the company announced its highest interim dividend since 2017, amounting to Rs 65 per share.
Currently, the stock is trading at a PE of 57.9x, which is lower than the COVID low of 66x in March 2020 and also below its median PE of 60.6x.
In its financial results for the quarter ended December 31, 2024, Gillette India reported strong growth, with sales reaching Rs 686 crore, reflecting a 7 per cent increase year-over-year. Meanwhile, profit after tax (PAT) stood at Rs 126 crore, marking a 21 per cent growth compared to the previous year. This impressive performance was driven by strong brand fundamentals, consumer response to innovation, and superior retail execution.
At the current share price of Rs 8,415, Gillette India’s dividend yield stands at 1.31 per cent. Notably, foreign institutional investors (FIIs) have increased their stake in the company to a record-high 4.11 per cent as of Q3 FY24, the highest since March 2022.
Disclaimer: The article is for informational purposes only and not investment advice