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Thursday, January 21, 2010

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!!BSE CODE - 507815
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 21-Jan-2010
Share price- Rs.1,359.00;
Market Cap- Rs.4,464.50 cr;
52 Week- H- Rs.1,450.00; L- Rs.575.25;
P/E- 33.97; EPS- Rs.40.33;
Book value – Rs.150.65;
Dividend – Rs.12.50; Fv- Rs.10;
Total Debt- 0.00;
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.1100- 1250, and should accumulate on further dips.
Pass on the legacy to your future generation. A DEBT FREE COMPANY at price of Rs.1100 is definitely a best buy. I bought at Rs.1080 on Diwali, Gillette India have given 1:1 bonus in 1989, A VERY STRONG CANDIDATE FOR THE BONUS ISSUE
I am not giving the price target as I believe this stock is meant for long term holding and not for short term gains. Yes it will not give you instant gains,it is a lazy kind of stock but with an extremely promising fundamentals.Daily vol is around 4169 shs from which 3321 shs -79.66 % is on delivery basis.

1 comments :

  1. HI
    Mr. Radhakishan Damani sold 75000 shs @ Rs.1750 & P&G BOUGHT IT BACK @1750 75000 shs on
    22-MAR-2011,
    http://www.nseindia.com/content/equities/block.csv

    ReplyDelete

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