Procter & Gamble Hygiene and Health Care Limited

Consumer Defensive — Household & Personal Products · NSE

₹7,170.50+₹75.50 (+1.06%)

DalalBaazaar Score

73 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Low

Driven by small-cap size, which brings sharper price swings, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

The 60-second version of Procter & Gamble Hygiene and Health Care Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Procter & Gamble Hygiene and Health Care Limited manufactures and sells branded packaged fast-moving consumer goods in the feminine care and healthcare businesses in India and internationally. It operates through Health care Products and Hygiene Products segments.

IndustryHousehold & Personal Products

SectorConsumer Defensive

Employees386

Annual revenue₹4,282 Cr

How does it make money?

Turns over ₹4,282 Cr a year. Of every ₹100 of sales, about ₹20 reaches shareholders as profit, with ₹29 left at the operating level before interest, tax and depreciation. Each of its 386 employees supports ₹11.09 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹11.09 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., DABUR INDIA LTD, ITC LTD, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 135.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 113.7% against a peer median of 27.4% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE27.4%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 8.3% and earnings to grow about 11.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+8.3%

Est. earnings growth+11.1%

Analysts2

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +13% while net margin moved +32% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+13%

Margin effect+32%

DalalBaazaar Score

73/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 4.1% — barely ahead of inflation
• Profit CAGR of 14.2%
✗ Latest-year revenue growth of -4.9% is below the longer-term trend — momentum is fading
✗ Profit fell 34.3% in the latest year

Quality vs. Valuation

Company Quality

77/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

65/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

29.4x

4Y Median

75.4x

50 monthly readings · mean 68.1x · range 25.8x–101.2x

Sector Median

38.6x

median of 4 sector peers

🟢Current valuation is approximately 61% below its 4y median of 75.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 24% below the peer median of 38.6x.

vs. its own history

Cheap

75.4x median over 50 months · -61%

vs. sector peers

Cheap

38.6x median of 4 peers · -24%

vs. generic bands

Fair

15x–35x

EV/EBITDA

18.5x

PEG

2.08

What's Good / What's Bad

🟢 What's Going Well8

Margins are improving
EBITDA margin is up from 22.8% to 28.6% over 3 years.
Debt is being paid down
Total debt is down 83% over 3 years.
Cash generation is improving
Free cash flow is up 67% over 3 years.
Return on equity is rising
ROE has improved from 78.1% to 113.7%.
Return on capital is rising
ROCE has improved from 97.4% to 135.4%.
High return on capital employed
ROCE of 135.4% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.12x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 135.4% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 22.8% to 28.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 83% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 61% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 24% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 4.1% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 27%✓ 28.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 4.1% CAGR
Latest reported year was -4.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹875 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 132%✓ 135.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 2 neutral · 3 weak

Market Cap

₹23,276 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

29.4x

Fair

Fairly valued against the generic band

P/B Ratio

30.89x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹243.59

Profitable

Profitable on a per-share basis

ROE

113.7%

Strong

Strong capital efficiency

ROCE

135.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.12x

Low

Conservative leverage

Revenue Growth (YoY)

-4.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-34.3%

Falling

Profits are shrinking

Dividend Yield

3.21%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹875 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

24.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

18.0%

Good

Healthy core-business profitability

Net Margin

18.6%

Good

Strong bottom-line conversion

Current Ratio

1.22

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.23

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

7019.2 / 7628.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

56.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY26	3Y CAGR
Revenue	₹3,792 Cr	₹3,905 Cr	₹4,192 Cr	₹4,282 Cr	+4.1%
EBITDA	₹865 Cr	₹919 Cr	₹1,054 Cr	₹1,226 Cr	+12.3%
EBITDA Margin	22.8%	23.5%	25.1%	28.6%	—
PAT (Net Profit)	₹576 Cr	₹678 Cr	₹675 Cr	₹857 Cr	+14.2%
EPS	₹177.37	₹208.91	₹207.95	₹263.86	+14.2%
ROE	78.1%	71.7%	87.1%	113.7%	—
ROCE	97.4%	80.9%	110.1%	135.4%	—
Total Debt	₹5 Cr	₹4 Cr	₹3 Cr	₹1 Cr	-44.5%
Free Cash Flow	₹523 Cr	₹781 Cr	₹426 Cr	₹875 Cr	+18.7%

🟢 Revenue has grown at 4.1% a year over 3 years.

🟢 EBITDA has grown at 12.3% a year over 3 years.

🟢 EBITDA Margin has risen from 22.8% to 28.6% over 3 years (+5.8 pts).

🟢 PAT (Net Profit) has grown at 14.2% a year over 3 years.

🟢 EPS has grown at 14.2% a year over 3 years.

🟢 ROE has risen from 78.1% to 113.7% over 3 years (+35.6 pts).

🟢 ROCE has risen from 97.4% to 135.4% over 3 years (+38.1 pts).

🟢 Total Debt has shrunk at 44.5% a year over 3 years.

🟢 Free Cash Flow has grown at 18.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,804 Cr

Total Liabilities

₹1,050 Cr

Cash & Equivalents

₹557 Cr

Operating Cash Flow

₹924 Cr

Capex

-₹50 Cr

Shareholding (proxy)

Institutional Holding

14.0%

Insider Holding

70.9%

Corporate Actions

Next Earnings

12 Nov 2026

Dividend Rate

₹230

Ex-Dividend Date

01 Sept 2026

Analyst Consensus

Recommendations

1 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹9,834

+37.1% vs CMP

Target Range

₹7,500 – ₹12,168

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
DABUR INDIA LTD	34.7x	17.2%
ITC LTD	16.6x	27.4%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 positive3 mixed2 general

Procter & Gamble Hygiene and Health Care (NSEI:PGHH) Stock Forecast & Analyst Predictions

Simply Wall Street, 04 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Procter & Gamble Hygiene Share Price rises on price action

Univest, 09 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Procter & Gamble Hygiene and Health Care (PGHH.NS) Eases 1.13% to ₹6843 as Traders Eye ₹6500 Support - Quality ETF

siam.in, 08 Oct

Procter & Gamble Hygiene Reports ₹901 Crore Sales For Q1

Sahi, 23 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

PGHH Share/Stock Price Live, NSE

TechGraph, 08 Oct

P&G Hygiene Q4 Results: Net profit remains flat at ₹156 crore; declares ₹60/share final dividend

Livemint, 28 MayCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Revenue growth is negative (-4.9%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Risk

MiddlingGrowth · Valuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

All 5 tripwires holding · see Key things to watch ↑