Saturday, September 5, 2009
MY STOCK PICK: GILLETTE INDIA
As we all know that India is enjoying the demographic dividend, as more than 40% of Indian population is between the age group of 20 – 40 years, and with the population of 1.18 billion in India a 40% means nearly 47.2 cr people are young and if we assume that from this young population minus females needs shaving kit every morning then for next 20-30 years the consumption & sales of these products would be growing Right!! and the company would be delivering consistent performance.But this is just an assumption..what product am I talking about….. It’s GILLETTE!!
Gillette India is an NSE BSE listed company jointly promoted by House of Poddar Enterprise and Gillette Company, U.S.A. (Gillette). A company engaged in manufacturing shaving blades (7 O’clock, Ejtek shaving brush, Gillette Mach- 3, Mach 3 turbo).Just look at the details and you will understand
Details as on 04-Sep-2009
Share price- Rs.1,008.35;
Market Cap- Rs.3,290.94 cr;
52 Week- H- Rs.1,079.90; L- Rs.520;
P/E- 29.09; EPS- Rs.34.70;
Book value – Rs.165.27;
Dividend – Rs.12.50; Fv- Rs.10;
Dividend Ex-date- 15-oct-09;
Net Sales- Rs.661.51 cr; PBT- Rs.177.01 cr; Total Debt- 0.00;
Net Profit- Rs.113.13 cr; Reserves- Rs.458.30;
Total Share Issued- 3,25,85,217 shares;
Public Shareholding – 36,73,368 shares; Public Shareholding in %- 11.27%;
Promoter’s holding- 2,89,11,849 shares; Promoter’s holding in %- 88.74%;
Procter & Gamble India holds 41.02 % stake in Gillette India, even one of the most smart investor is into it. R.S. Damani holds 1.06 % in Gillette India. Gillette India,have its competitors like HUL,Dabur,Colgate,Godrej in personal care segment but non of these can compete Gillette in male personal care segment, (you can survey it by your self)
Gillette India is a best buy at Rs.800- 850, and should accumulate on further dips.
Pass on the legacy to your future generation. A DEBT FREE COMPANY at price of Rs.800-850 is definately a best buy. Gillette India have given 1:1 bonus in 1989,
I am not giving the price target as I believe this stock is meant for long term holding and not for shortterm gains. Yes it will not give you instant gains,it is a lazy kind of stock but with an extremly promising fundamentals.Daily vol is around 20,000 sh from which 35 % is on delivery basis.