Gillete India Limited: Stock Review & Analysis by Yadnya

Download as pdf or txt
Download as pdf or txt
You are on page 1of 63

GILLETE INDIA LIMITED

STOCK REVIEW & ANALYSIS BY YADNYA

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


GILLETTE INDIA LTD –KEY TOPICS TO BE DISCUSSED
Current Market
Position & Brand Market Opportunity
Financials Valuations Governance
Value & Business & Growths
model

Promoter Holding
Milestones Share Price
PE Trend
Personal Care Performance Major Shareholders
Industry Overview
Group subsidiaries Management Profile
Sales and Profit
Valuation Ratios Board Composition
Percentages
Key Highlights Directors
remuneration
Market Share Latest Financials and Corporate
Comparison with Relative Valuation Governance
4 Ps of Marketing peers SWOT Analysis

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


COMPANY
OVERVIEW

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


MILESTONES
1995-96 2000
1984
1993 Entered into distribution Company rechristened as
Company was
Launched Gillette shaving agreement and launched Gillette after merger of
incorporated as Indian
products internationally known Duracell and Wilkinson
Shaving Products
brand-OralB Sword with itself.

2005 2004 2003


2013
Gillette became part of Gillette Mach3 Turbo- Gillette Vector Plus and
Gillette Vector 3 &
Procter & Gamble triple blade shaving Ultra M3AA batteries
Venus launched
Company, USA. system was launched. were launched

2016
Gillette divested
Duracell

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


BRANDS UNDER GILLETTE INDIA LIMITED

GROUP SUBSIDIARIES
©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited
KEY HIGHLIGHTS
Market leader in shaving Industry in India

Strong Parent - Able to leverage the global expertise and scale of P&G group

First in India to introduce shaving gel in tubes

Company undertook capex of INR 81.06 crores in grooming segment in FY18.

Two manufacturing locations in India – Bhiwadi, Rajasthan and Baddi, Himachal Pradesh

Zero Debt Capital Structure

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


COMPANY
OVERVIEW
4Ps OF MARKETING
Product | Pricing | Promotion | Place (Distribution)

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


PRODUCT MIX
Razors, Trimmers Gillette Fusion, Gillette
and Blades for men Mach 3, Gillette Flex ball
Gillette India
Contributes 79% of Gillette offers shaving
Grooming total FY18 Pre and post shave creams, gels, foams, skin
Revenues. care and aftershaves
Declined by 7.8%
from FY17
Venus is a version
of the Mach3 for
women

Oral B Pro health,


Manual Ultrathin, Sensitive,
Toothbrushes Clean,
123,Kids
Oral B Toothbrushes
Contributes 21% to Battery Operated Oral B Pro 2 2200N
Oral Care the overall FY18 Toothbrushes and Oral B Pro 600
revenues. No
significant growth Floss

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


MALE GROOMING
Market leader in shaving category having a market share of about 70% in organised market and recorded highest
market share increase across blades and razor category in a year

The shave care range includes manual and battery operated razors which are segmented into three tiers as
mentioned below

VALUE MID-TIER PREMIUM RANGE


Presto, Vector, 7’o Clock, Guard MACH 3 Turbo,MACH3 SENSITIVE, FUSION PROGLIDE , FUSION POWER
Body, VECTOR 3, PRESTO 3 RAZOR

The Company also manufactures pre shave and post shave products like shaving creams, gels and foams as well as
after shaves

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


ORAL CARE
Oral care segment consists of battery operated tooth brushes, Manual toothbrushes, Electric toothbrushes,
Replacement brush heads and floss.

Oral B has a good traction in Oral care industry and comes second after Colgate in Brushing industry

Upgraded the packaging in premium tier to establish superiority and undertook price correction in FY18 to stay
in competition.

Expanded the trial of Electric rechargeable toothbrushes working closely with dentist partnership team and e-
commerce players

Oral-B manual brushes continued to be the most recommended and used toothbrush brand among dentists in
India (based on survey of representative dentists' sample in India)

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


PRODUCT SEGMENTATION
Mid Tier – Manual Premium Tier- replacement Super Premium Tier -
Toothbrushes (INR 30-150) brush heads, Battery operated Electric toothbrushes
toothbrushes (INR 500 and above)
(INR 400-500)

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


NEW PRODUCTS LAUNCHED IN FY17-18
Cavity Defence black
Simply Venus, a 3 blade which has unique cup
disposable razor to cater shaped bristles to avoid
the grooming needs of cavities, along with a
females tongue cleaner on the
back of brush head

India’s first Neem infused


Toothbrush, having Z-
bristles and moulded
tongue cleaner on the
back of brush head

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


PRICING STRATEGY - Gillette
Perceived Penetrative Bundle
Value Pricing Pricing Pricing
Launching low
Set the prices of Clubbing various
cost products to
products as per products and
lure its customers
customer selling them at
away from
demands lesser price
competition

Vector and Vector Razor-Blade


Mach 3 Pricing
Plus pricing Combos

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


PRICING- RAZORS and BLADES
Product Category Company Name Price of Product(INR)
Razors Blades
Presto Gillette 20-30 60
Hattrick (Non- Super Max 20 -
refillable)
Body (Non-refillable) Gillette 250 -
Double edge safety Bombay Shaving 195 -
(Non-refillable) company
Mach 3 Gillette 150-200 130
SMX 3(Non-refillable) Supermax 150 -
Fusion Gillette 325-500 260
Dexter V6 Bombay shaving 345 20
Company

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


PRICING - SHAVING ACCESORY
Shaving Products

Shaving Shaving gel Shaving foam After Shave Shaving


Company Name cream Brush
Price(INR)/gm Price(INR)/gm Price(INR)/gm Price(INR)/ml Price

Gillette 1.67 0.75 0.83-1.13 5.36 54

Park Avenue 0.77 - 0.875 1.99 54

Nivea - 1.5 1-1.25 2-2.2 45

Bombay Shaving 1.95 - - 3.95 795


Company

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


PRICING STRATEGY -Oral B

Adopted a skimming pricing strategy for its products which is


explained as follows:

1.Has launched innovative products at premium pricing when it does


not have that much competition in market.

2. Later when other brands launch similar products, it adopts


competitive pricing strategy and drops its prices by discounts and
incentives to make its products at par with competition

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


PRICING-ORAL CARE

ORAL B COLGATE
Product Price Product Price
(₹) (₹)
Electric toothbrush 3000-4400 Does not manufacture Electric -
Toothbrush
Battery operated toothbrush 400 Battery operated (for Kids) 500
Battery operated 600
(charcoal activated)
Replacement brush heads 480 Replacement Brush head 350
Manual Toothbrush 30-150 Manual Toothbrush 20-200
Dental floss 110 Dental floss 75

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


PROMOTION AND BRANDING – GILLETTE
Gillette spends quite a lot of money on advertising and uses emotional marketing strategy.

1. Gillette advertises on TV, print, online, billboards etc. Endorsed by celebrities like Tiger Woods, Roger Federer, Rahul Dravid, Irfan Khan
etc. Also signed up Deepika Padukone to endorse their female product portfolio. Most of Gillette’s advertisements are focussed on
eradicating the stereotypical norms from the society like Gillette’s ad on #MeToo, etc

2. Through its well-established website, it offers range of products, shaving tips, manscaping tips and facial hair styles.

3. It also has a shave club which shares offers, rewards, and opportunities to fit the lifestyles of youth. Through all these Gillette helps the
organization to connect directly with the youth and thus increase its awareness in the customer base.

4. Through various campaigns: Gillette continues to run the ‘Safalta’ program for youngsters in the country to train and mentor them on
soft-skills that help them secure employment

5.Through social media apps: The brand store is integrated with Gillette India’s social media platforms across YouTube, Twitter and
Facebook to enable consumers interact and engage with the brand.

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


PROMOTION AND BRANDING –ORAL B
Through TV, print, online billboards: Oral B has roped
in Bollywood stars like Madhuri Dixit, Nushrat
Bharucha to endorse their products

Oral-B also provides dental care information and


provides discounts and incentives on purchase from
on its site.

Through dental check-up campaigns: They also


provide dentists with free sample so that they can use
them and endorse them and also conduct free dental
check-up campaigns.

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


DISTRIBUTION
Company uses hub and spoke model for distribution, wherein hub are the major tier1 cities and spokes are the tier 2
cities. It is carried out through two main channels-offline and online

• Has at least one lakh retail outlets in 3600 cities.


• Has recruited DHL as the company’s service provider so that an efficient
Offline dispatch system is maintained
• Gillette products have a good reach in rural as well as urban area

• Has a well designed website which presents its offerings in a systematic


manner.
Online • Tied up with leading online player Snapdeal to launch its online store on
platform and make a deeper penetration into Indian markets. Its products
are also easily available on major ecommerce giants like Amazon, Flipkart,
Nyka, etc.

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


GILLETTE INDIA LTD –RATINGs

Current Market
Position & Brand Market Opportunity
Financials Valuations Governance
Value & Business & Growths
model

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


PERSONAL CARE
INDUSTRY OVERVIEW

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


MALE GROOMING INDUSTRY IN INDIA
Male Grooming Industry in
India
(valued at INR 16,800 crore as of
2018)

Shaving Product Beard Care Haircare Fragrance


Skin care Market
Market Market market Market

Foam and
Shaving cream Bar soap Body wash Hair oil Shampoo Perfume Deodorant
Gel

Fairness
Razor Shower gel Hair gel Hair Serum
cream

Hair styling
Facewash
Products

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


SHAVING INDUSTRY IN INDIA
Shavings products currently control the largest market
share in Male grooming Industry of about 50% and
consists of products like shaving cream, razor, foam and
gel.
Out of 50% ,Majority(~80%) of shaving products include
razors and blades and the remaining are shaving cream,
foam and gel.

Indian Male grooming market has grown by more than


45% in last 5 years.

According to study conducted by Mintel, the average


Indian man spends around 42 minutes on grooming.

India’s Shaving business has higher barriers to entry


mainly due to high cost of manufacturing blades and
then competing with major FMCG giants like Gillette in
product, price and distribution.

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


MALE GROOMING INDUSTRY IN INDIA

Gillette by Proctor and Gamble is the market leader in the Male grooming, followed by HUL and Emami

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


ELECTRIC TRIMMERS AND SHAVERS
CLEAN-CUT does not cut it any longer

Electric trimmers are used mainly to trim the beard and maintain a rugged look. Shavers are specific
devices meant to shave the face and get clean shaven look.

Looking at the growing trend of keeping a beard, male grooming companies have started including
electric trimmers and razors in their product portfolio. E.g. Gillette

Although the main challenge in Electric shavers and trimmers market is changing the habit of
common man to shift from manual razors to shavers as using these equipment incurs a higher cost.

Also, Electric trimmers and shavers are considered in premium segment of male grooming products
and have a lesser reach in the rural areas as compared to manual razors

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


SHAVING INDUSTRY IN INDIA – NEW ENTRANTS
Recently, a slew of entry of online start-ups like Beardo, Bombay
Shaving Company, Ustraa are aiming to gain market share in shaving
industry through their innovative products and flashy packaging,
thus targeting the millennial generation.

These startups are posing competition to many big players like


Proctor & Gamble, HUL, etc. Hence, several FMCG giants have
started investing in the new age online retail startups selling
grooming products for men.

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


MALE GROOMING INDUSTRY- PROSPECTS
Indian shaving products
The male grooming industry in
market is expected to grow at
India is projected to grow at a
a CAGR of 29% and accounts
CAGR of 15-20% between
for major share in Male
2017-21.
grooming Industry.

The demand for men’s


The male grooming industry in
grooming products is surging
India is projected to grow at a
due to increasing
CAGR of 15-20% between
consciousness of Indian men
2017-21.
to look physically appealing

Rising promotional activities


featuring male icons including
Bollywood actors or
sportsmen are also
anticipated to spur growth in
the market.

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


ORAL CARE INDUSTRY
Oral Care Industry In India is estimated around INR 5,400 crores and
includes toothpaste, toothbrush, toothpowder, mouthwash and others
such as dental flosses and oral care chewing gum.

As of 2018, Oral care accounts for 17.1% of the total FMCG sector in
India
Of these, toothpaste is largest and fastest growing category. Colgate is a
market leader in toothpaste market in India.

Toothbrush segment is mainly divided between manually operated


toothbrushes and battery operated toothbrushes.
Out of which manually operated toothbrushes possess the majority of
market share due to their low price

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


ORAL CARE – TOOTHBRUSH INDUSTRY
Indian toothbrush market is also segmented into toothbrushes for Adults and Kids,
out of which toothbrushes for adults dominate the market

Indian Toothbrush Market


Indian toothbrush market was estimated at USD 50 million in 2015 and accounts for share,By company
around 10% market share in oral care industry.

Toothpaste accounts for major market share with around 66% market share in oral 20%

care industry 10% 45%

25%

Indian toothbrush market share of companies like Colgate, oral-B,HUL is as shown :


Colgate Oral-B(P&G) Ajay Others
The domestic production of toothbrushes has been able to meet the local demand
and therefore India imports a very trivial amount of toothbrushes from other
countries.

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


ORAL CARE INDUSTRY-PROSPECTS
Indians are now more aware how their diet affects their oral health and hence
will boost the sales of oral care products like toothbrushes, floss, toothpaste,
mouthwash, etc

Oral care industry is an underpenetrated Industry with majority of population


not having access to the modern dental care and hence it has a huge scope to
expand

Various dental check-up campaigns conducted by non-government bodies in


rural area have also increased the awareness of oral hygiene ,thus leading to
gradual shift from traditional oral care products like neem twigs,
toothpowders to modern day oral care products

Rising disposable incomes, demographics, oral hygiene awareness, availability


of customised oral care products and improved reach in rural areas is
expected to augur well for the industry

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


GILLETTE INDIA LTD –RATINGs

Current Market
Position & Brand Market Opportunity
Financials Valuations Governance
Value & Business & Growths
model

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


GILLETE INDIA LIMITED
Part 2
STOCK REVIEW & ANALYSIS BY YADNYA

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


FINANCIAL INFO.

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


CLOSE(NIFTYFMCG) CLOSE(Gillette India Ltd)

200.00
180.00 3 Year Returns
160.00
140.00 Gillette India = 55.29%
120.00 NIFTY 50 = 28.30%
100.00
80.00
60.00
40.00
20.00
0.00
Jul/17
Aug/17

Jul/18
Aug/18

Jul/19
Aug/19
Sep/16

Feb/17

Sep/17

Feb/18

Sep/18

Feb/19
Jan/17

Jan/18

Jan/19
Oct/16

Oct/17

Oct/18
Mar/17

Mar/18

Mar/19
Dec/16

Dec/17

Dec/18
Apr/17

Apr/18

Apr/19
Jun/17

Jun/18

Jun/19
May/17

May/18

May/19
Nov/16

Nov/17

Nov/18
q52 Week Low – INR6169 q52 Week High – INR 7919.85

SHARE PERFORMANCE
©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited
QUARTERLY PERFORMANCE – GROSS SALES
Gross Sales

534.54
600 40.00%
34.7%

475.66

465.51

463.97
456.51
451.54
30.00%

437.59
500

419.29

409.76
408.03

407.52
396.82
20.00%
400

Percentage Change
Gross Sales (Rs. Cr)

10.8% 11.4% 10.00%


300 4.2%
0.00% -0.1% -0.3%0.00%
-2.1%
200 -5.4% -6.8%
-9.3% -10.00%

100 -18.1%
-20.00%

0 -30.00%
Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19
Gross Sales Percentage Change in Gross Sales

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


QUARTERLY PERFORMANCE – OPERATING PROFIT
Operating Profit

167.96
180 100.00%

149.49
160 80.00%
86.6%

107.02
60.00%
140

119.13
62.0%

110.65
48.4% 40.00%
46.5%

102.05
120
Operating Profit(Rs. Cr)

Percentage Change
99.9
90.01 20.00%
89.32

100 19.2%
0.00%

72.12
0.00%

68.3
80
-6.7% -7.8% -20.00%
60
0.8% -40.00%

32.41
40 -42.7%
-60.00%
-57.1%
20 -80.00%
-78.3%
0 -100.00%
Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19
Operating Profit Percentage Change in Operating Profit

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


QUARTERLY PERFORMANCE – PROFIT AFTER TAX
PAT
120 120.00%

105.82
88.8% 100.00%
100

87.76
64.34
93.3% 80.00%

60.00%

71.32
80 62.5%

65.35

Percentage Change
40.00%

58.77
PAT (Rs. Cr)

54.84

54.75

53.99
60 20.00%
70.8%

45.82
21.4%

37.67
0.00%

34.62
40 0.00%
-8.7% -20.00%
-17.4%
-0.2% -40.00%
20

-51.5% -47.8% -60.00%

0
-64.4% -80.00%
Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19
Profit After Tax Percentage Change in Profit After Tax

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


Gross Sales CAGR=8.12%
2500 35.0%

28.9%
30.0%
12.9%
24.0%
2000 11.0% 25.0%
21.6%

1,970.56
0.7%

1,861.65
16.8% 20.0%
16.3%

1,788.24
1,775.68
1,745.62

1,676.85

Percentage Change
Gross Sales (Rs. Cr)

1500 15.0%

1,435.33
10.0%

1,228.80
1000 5.0%
1,056.86

0.0%
852.48

-6.2%
500 -5.0%
-9.9%
-10.0%

0 -15.0%
Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19

Gross Sales (crores) Percentage Change in Gross Sales

ANNUAL PERFORMANCE – GROSS SALES


©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited
CAGR=5.76% Operating Profit

419.41
450 200.0%

394.60
394.35
289.45
400

341.37
150.0%
350

300 153.9%
Operating Profit (Rs. Cr)

225.31

Percentage Change
100.0%
250

169.59
153.79
200

140.87
50.0%

114
22.9%
150
0.1%
19.6% 20.4% 17.9%
100
0.0%
-8.4% -6.0%
50
-31.7% -32.8%
0 -50.0%
Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19

Operating Profit (crores) Percentage Change in Operating Profi t

ANNUAL PERFORMANCE – OPERATING PROFIT

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


CAGR=6.32% PAT
300 250.0%
207.5%

253.08

252.92
229.05
200.0%
250

199.26
150.0%
200

158.13
15.1% 100.0%
PAT (Rs. Cr)

137.1
150
113.13

10.4%
50.0%
27.0%

87.16
86.15
26.0%

75.73

51.42
100
9.4%
0.0%

-37.2% -12.1% -41.0% -9.5%


50
-50.0%

0 -100.0%
Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Jun-19

PAT (crores) Percentage Change in PAT

ANNUAL PERFORMANCE – PROFIT AFTER TAX


ANNUAL PERFORMANCE – Profit After Tax
©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited
ROCE
70 200.0%
188.4%

58.93
53.03
60
150.0%

50

40.08
13.7%

39.78
100.0%
38.64

36.16
40
ROCE (%))

50.0%

30 33.3%

22.88

21.8
11.1%

19.18
3.7% 10.0%
0.0%
20

12.54
-42.9% -42.5% -50.0%
10 -16.2%

0 -100.0%
Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18

ROCE (%) Percentage Change in ROCE

ANNUAL PERFORMANCE - ROCE

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


LATEST FINANCIALS VS CATEGORY
PARAMETERS Gillette India CATEGORY AVG. RANK IN CATEGORY

Market Capitalization INR225,850 crores - -

Profit After Tax (PAT) (TTM) INR 252.9 crores - -

EBITDA Margin(TTM) 21.2% 24.4% 4th

Profit After Tax Margin (PATM) (TTM) 13.6% 15.2% 4th

Return on Capital Employed (ROCE) 58.9% 84.5% 4th

Return on Equity (ROE) 38.6% 57.2% 4th

Return on Assets(RoA) 21.1% 50.9% 4th

Current Ratio 1.1x 1.3 1st

Cash Conversion Cycle 0.7 -23.7 4th

D/E Ratio 0 0.003 1st

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


COMPARISON WITH COMPETITORS
P&G Hygiene &
Gillette India Colgate Palmolive
Healthcare
Market Capitalization INR22,851.3 Crores INR 34,665.9 Crores INR 33,430.8 Crores

EBITDA Margin(TTM) 21.2% 28.8% 22.5%

Profit After Tax Margin (PATM) (TTM) 13.6% 16.8% 14.2%

Return on Capital Employed (ROCE) 58.9% 73% 89.1%

Return on Equity (ROE) 38.6% 50.9% 56.9%

Return on Assets (RoA) 21.1% 48.8% 52.9%

Current ratio 1.1x 0.9x 1.6x

Cash Conversion Cycle 0.7 -25.6 -28.8

D/E Ratio 0 0.1 0

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


GILLETTE INDIA LTD –RATINGs

Current Market
Position & Brand Market Opportunity
Financials Valuations Governance
Value & Business & Growths
model

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


VALUATION

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


P/E Ratio
160.0 160.0

140.0 135.4 140.0

120.0 120.0

101.5
100.0 94.1 91.6 93.8 100.0

80.0 78.6
80.0 69.6 65.8 80.0
68.8
62.4 62.6
68.8
60.0 41.2 51.9 54.2 60.0
50.5
44.1 45.9

40.0 31.0 40.0


22.8
20.0 20.0
20.5

0.0 0.0
01/Jun/2009 01/Jun/2010 01/Jun/2011 01/Jun/2012 01/Jun/2013 01/Jun/2014 01/Jun/2015 01/Jun/2016 01/Jun/2017 01/Jun/2018 04/Sep/2019

PE Ratio (x) FMCG Category Average P/E

PE TREND
©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited
Jun-18 Jun-17 Jun-16 Jun-15 Jun-14 Jun-13 Jun-12 Jun-11 Jun-10
Price / Book
77.4 57.1 61.0 75.5 82.5 57.8 77.1 65.0 37.7
Value(x)
Dividend Yield(%) 30.4 33.5 16.0 20.0 10.8 10.5 12.4 11.5 9.9

EV/Net Sales(x) 0.4 3.2 0.9 0.3 0.7 0.7 0.6 0.7 0.9

EV/EBITDA(x) 12.4 9.5 7.8 7.4 4.1 4.6 6.1 6.4 6.4

EV/EBIT(x) 52.6 39.4 39.5 50.8 59.6 39.4 53.7 44.3 24.1

EV/CE(x) 59.0 43.4 43.0 58.7 83.9 48.3 64.7 50.9 25.5

M Cap / Sales 17.4 16.9 10.2 12.2 6.4 6.4 5.0 5.4 4.4

VALUATION RATIOS
©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited
Verdict:
As seen from the relative valuation
metrics(P/E and EV/EBITDA),company
seems to be trading at richer valuations

RELATIVE VALUATION
©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited
GILLETTE INDIA LTD –RATINGs

Current Market
Position & Brand Market Opportunity
Financials Valuations Governance
Value & Business & Growths
model

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


CORPORATE
GOVERNANCE

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


PROMOTER HOLDING , PLEDGED HOLDING, FII AND DII
Sep-18 34.88% 40.12% 4.69% 6.21% 14.10%

Dec-18 34.88% 40.12% 4.41% 6.81% 13.78%

Mar-19 34.88% 40.12% 4.27% 7.11% 13.62%

Jun-19 34.88% 40.12% 4.21% 7.34% 13.45%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Promoter Foreign Promoter FII's DII's Others

None of the shares held by promoters are pledged.

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


PUBLIC SHAREHOLDING MORE THAN 1%
Jun-19 Mar-19 Dec-18 Sep-18

ADITYA BIRLA SUNLIFE TRUSTEE PRIVATE


4.3 4.1 3.9 3.8
LIMITED

ADVENTZ FINANCEPRIVATE LIMITED 3.4 3.4 3.4 3.4

GAOLING FUND 1.2 0 0 0

GLOBALWARE TRADING AND HOLDINGS


0 1.6 1.6 1.6
LIMITED

LIC P&GS FUND 2.7 2.7 2.6 2.1

MERIYL LYNCH MARKETS SINGAPORE LTE LTD. 0 1.2 1.4 1.5

NATIONAL WESTMINSTER BANK PLC 0 1.1 1.1 1.1

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


MANAGEMENT PROFILE

Name Designation Education Tenure at current


position(Years)
Madhusudan CEO MBA(IIM Calcutta) 1
Gopalan
Gagan Sawhney CFO CFA,MBA(IIM Ahmedabad) 2

Ghanashyam CS CS,LLB 1
Hegde

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


BOARD COMPOSITION & PROFILE
The board consists of 7 Independent directors and the company has received declarations that they meet the independence criteria prescribed
under the Company’s Act.
Name Designation Directorship held in other Profile
companies
B.S. Mehta Independent director- Chairman 5 CA
Deals with taxation, accountancy and valuation of
merger and acquisition

C.R Dua Independent director 14 Founding partner of Dua Associates. Experienced in


providing strategic advice, corporate finance,
governance and ethics.
G.C. Das Independent director 4 Graduate from Harvard University
CEO and later MD of P&G global worldwide(strategic
planning)
A.K Gupta Independent director 1 PGDIM(JBIMS),B.E(IIT Delhi)
Experience of over 34 years in manufacturing and
project supply chain in India and abroad
N.P Sarda Independent director 1 40 years of rich experience in finance, audit and
accounting.
Has contributed to prestigious institutions like ICAI,
IAS, IFRS, etc

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


OTHER CORPORATE GOVERNANCE
Parameters On-going practices Verdict
Nomination committee Comprises of Independent Good
directors

Audit committee Comprises of Independent Good


directors

Auditor Kalyaniwalla & Mistry LLP -


Auditor fees INR 112 lakhs -
Auditor’s opinion Unqualified Good
Proxy Voting Allowed Good
Independent directors meeting Once in a year Good
Gender Equality Present Good

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


DIRECTOR’S REMUNERATION & COMPETITION

Company Name Director /KMP Designation Remuneration Ratio of Directors to


name (in INR crores) median remuneration
of employees
Gillette India A. I. Rajwani MD &CEO(till30th 1.4 20.2
june’18)
Mr K. Natrajan WTD 0.6 9.2
Mr B.S Mehta Chairman 0.1 2.0
Hindustan Unilever Sanjeev Mehta MD&CEO 19.4 170.0
Shrinivas Phatak CFO 1.0 27.3
Harish Manwani Chairman 0.6 -

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


AWARDS AND RECOGNITIONS

Recognized by Working
Ranked among top 10
Mothers Magazine as one of
employers in Annual
the best companies for
Neilson Survey
women to work in India

Gillette Venus All-In-One


Pack For Silky Smooth Skin
Gift Pack wins the award for
Best Epilator/Hair Removal-
NBFA 2019

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


GILLETTE INDIA LTD –RATINGs

Current Market
Position & Brand Market Opportunity
Financials Valuations Governance
Value & Business & Growths
model

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


Strengths Weakness
• Brand Name and Market • Not full presence in Male
share Grooming Market
• Very Good Quality Products • Smaller presence in Oral
• Good Distribution Care segment
• Premium Pricing • Less presence in Salons
• High Valuations
• Not much sales growth in
last few years

Opportunities Threats
SWOT ANALYSIS
• Increased disposable income. • Change in consumer
• Increasing awareness among habits(Keeping a
men regarding grooming and beard/Moustache instead
looks of shaving)
• Increased rural consumption • Competition from new
• Increase in youth population players
• Threat of substitutes
• Environmental concerns
regarding use of plastic
razors

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


DATA SOURCE & DISCLAIMER
Data Source –
Gillette India Ltd Company Website, Accord Equity
Disclaimer
We do our best to ensure that the data we publish is complete, accurate and useful. However,
because we do not create the data, and because the processing required to make the data
useful is complex, we cannot be liable for omissions or inaccuracies. The data and any related
materials contained therein are provided “as is,” without warranty of any kind, either express or
implied. The entire risk of use of the data shall be with the user.
All in the information above is for Information purpose only. Please do not use the above
information as a substitute to Investment/Stock advise and please contact your Financial
advisor for final recommendations.

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


About Yadnya InvestYadnya.in
Personalized Financial
Planning Portal

Simplest & Comprehensive


TaxYadnya.in Income Tax Knowledge

Yadnya Products & Services


Bank

A Financial Education & FinPlanYadnya.in


Do-It-Yourself Financial
Research Start-up started in planning Knowledge Bank

2016 Most Transparent MF


MFYadnya.in
Reviews

Mission Very detailed Fundamental


Our Mission is to educate and simplify Stock Fundamental Videos
Analysis of selected Stocks
concepts of personal finance for every
Indian.
eBooks @ InvestYadnya.in

Classroom & online Training


on
Youtube.com/Investyadnya

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited


THANK YOU!
C O N T AC T U S –
I F Y OU W ANT TO KNOW M ORE ABOU T U S C HEC K OU R W EBS I TE –
HTTPS : //I NVES TY AD NY A. I N OR Y OU C AN W RI TE TO U S AT
C ONTAC T@ I NVES TY AD NY A. I N

©2019 Copyright of Yadnya Academy Pvt. Ltd. | Redistribution Prohibited

You might also like