Review

PROCTER & GAMBLE HYGIENE AND HEALTHCARE

Ticker : 500459
FV : Rs 10
52-Week H/L : Rs 14,552.95/9790

We recommended Procter & Gamble Hygiene and Healthcare in volume no. 37, issue no. 47 (dated September 13, 2021) when the scrip was trading at Rs 14,130.30. On the standalone quarterly front, the company recorded a strong increase in net sales and operating income, which stood at Rs 786.59 crore for Q1FY22 as compared to the net sales & operating income of Rs 634.53 crore reported for Q1FY21. The operating profit dipped, registering a 32.75 per cent decline at Rs 80.60 crore in Q1FY22 as against the operating profit of Rs 119.86 crore recorded in Q1FY21. The company reported a net profit of Rs 48.98 crore in Q1FY22 as against the net profit of Rs 69.21 crore recorded in Q1FY21, squeezing 29.23 per cent. Operating leverage backed by healthy sales growth along with normalisation of ad spends is predicted to lead to healthy margin improvement in the future. Hence, we recommend HOLD.