Procter & Gamble Health Limited

Healthcare — Drug Manufacturers - Specialty & Generic · NSE

₹5,190.00+₹41.00 (+0.80%)

DalalBaazaar Score

75 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, small-cap size, which brings sharper price swings, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Procter & Gamble Health 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 Health Limited manufactures and markets pharmaceutical and chemical products in India and internationally.

IndustryDrug Manufacturers - Specialty & Generic

SectorHealthcare

Employees1,276

Annual revenue₹1,385 Cr

How does it make money?

Turns over ₹1,385 Cr a year. Of every ₹100 of sales, about ₹24 reaches shareholders as profit, with ₹34 left at the operating level before interest, tax and depreciation. Each of its 1,276 employees supports ₹1.09 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin34.4%

Net margin23.6%

Revenue / employee₹1.09 Cr

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, DR. REDDY S LABORATORIES, CIPLA LTD, DIVI S LABORATORIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

SUN PHARMACEUTICAL IND LP/E 34.9x · ROE 14.5%

DR. REDDY S LABORATORIESP/E 31.0x · ROE 8.8%

CIPLA LTDP/E 31.8x · ROE 9.8%

DIVI S LABORATORIES LTDP/E 83.0x · ROE 17.5%

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

ROCE has stayed above 15% in every year available and stands at 76.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 62.3% against a peer median of 14.5% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE76.8%

ROE62.3%

Peer median ROE14.5%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 12.7% and earnings to grow about 16.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+12.7%

Est. earnings growth+16.3%

Analysts2

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +27% while net margin moved +34% 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+27%

Margin effect+34%

DalalBaazaar Score

75/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.18 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

80/ 100

Excellent

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

Valuation

69/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

24.1x

4Y Median

41.6x

50 monthly readings · mean 41.1x · range 26.3x–54.6x

Sector Median

33.3x

median of 4 sector peers

🟢Current valuation is approximately 42% below its 4y median of 41.6x. 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 28% below the peer median of 33.3x.

vs. its own history

Cheap

41.6x median over 50 months · -42%

vs. sector peers

Cheap

33.3x median of 4 peers · -28%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

24.1x

P/B

16.42x

EV/EBITDA

17.8x

PEG

1.25

Dividend Yield

2.99%

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 26.3% to 34.4% over 3 years.
Cash generation is improving
Free cash flow is up 145% over 3 years.
Return on equity is rising
ROE has improved from 31.2% to 62.3%.
Return on capital is rising
ROCE has improved from 38.7% to 76.8%.
High return on capital employed
ROCE of 76.8% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 24.1x the stock trades 42% below its own median of 41.6x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 228% over 3 years — worth checking what it funded.
Receivables growing faster than sales
Receivables are up 97% against revenue growth of 27% — customers are taking longer to pay.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 228% over 3 years, from ₹3 Cr to ₹9 Cr.
🔴High leverageFinancial
Debt/Equity of 1.77x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 97% against revenue up 27% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 76.8% 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 26.3% to 34.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 42% 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 28% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 1.77x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 97% against revenue up 27%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above 32%✓ 34.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 6% a year✓ 8.2% CAGR
Latest reported year was 7.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹322 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 74%✓ 76.8%
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

5 good · 3 neutral · 3 weak

Market Cap

₹8,615 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

24.1x

Fair

Fairly valued against the generic band

P/B Ratio

16.42x

Rich

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

EPS (TTM)

₹215.19

Profitable

Profitable on a per-share basis

ROE

62.3%

Strong

Strong capital efficiency

ROCE

76.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.77x

High

High leverage

Revenue Growth (YoY)

7.4%

Modest

Modest growth

Profit Growth (YoY)

-4.9%

Falling

Profits are shrinking

Dividend Yield

2.99%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹322 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹5,190

P/E (Forward)

21.1x

Improving

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

Operating Margin

25.7%

Good

Healthy core-business profitability

Net Margin

24.9%

Good

Strong bottom-line conversion

Current Ratio

2.18

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.18

Defensive

Steadier than the market

52W Range Position

21%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

5351.9 / 5591.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

41.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY26	3Y CAGR
Revenue	₹1,092 Cr	₹1,206 Cr	₹1,129 Cr	₹1,385 Cr	+8.2%
EBITDA	₹287 Cr	₹342 Cr	₹322 Cr	₹476 Cr	+18.3%
EBITDA Margin	26.3%	28.3%	28.5%	34.4%	—
PAT (Net Profit)	₹193 Cr	₹229 Cr	₹201 Cr	₹327 Cr	+19.3%
EPS	₹116	₹138	₹121	₹197	+19.3%
ROE	31.2%	30.6%	37.3%	62.3%	—
ROCE	38.7%	39.5%	47.6%	76.8%	—
Total Debt	₹3 Cr	₹12 Cr	₹10 Cr	₹9 Cr	+48.6%
Free Cash Flow	₹132 Cr	₹194 Cr	₹207 Cr	₹322 Cr	+34.8%

🟢 Revenue has grown at 8.2% a year over 3 years.

🟢 EBITDA has grown at 18.3% a year over 3 years.

🟢 EBITDA Margin has risen from 26.3% to 34.4% over 3 years (+8.0 pts).

🟢 PAT (Net Profit) has grown at 19.3% a year over 3 years.

🟢 EPS has grown at 19.3% a year over 3 years.

🟢 ROE has risen from 31.2% to 62.3% over 3 years (+31.1 pts).

🟢 ROCE has risen from 38.7% to 76.8% over 3 years (+38.1 pts).

🔴 Total Debt has grown at 48.6% a year over 3 years.

🟢 Free Cash Flow has grown at 34.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹841 Cr

Total Liabilities

₹317 Cr

Total Debt

₹9 Cr

Cash & Equivalents

₹177 Cr

Operating Cash Flow

₹338 Cr

Capex

-₹16 Cr

Shareholding (proxy)

Institutional Holding

14.8%

Insider Holding

52.2%

Corporate Actions

Dividend Rate

₹155

Ex-Dividend Date

27 Aug 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹7,090

+36.6% vs CMP

Target Range

₹7,090 – ₹7,090

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
DR. REDDY S LABORATORIES	31.0x	8.8%
CIPLA LTD	31.8x	9.8%
DIVI S LABORATORIES LTD	83.0x	17.5%

Recent News

2 positive3 mixed1 general

Procter & Gamble Health shares rally 19% after strong earnings; check all Q4 numbers

Upstox, 26 MayPrice 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 Health Share Price Update and Analysis

Univest, 29 Sept

P&G Health stock surges 18% after solid Q4 results; PAT jumps 56% YoY

Business Standard, 27 MayResults

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

Read This Before Considering Procter & Gamble Health Limited (NSE:PGHL) For Its Upcoming ₹45.00 Dividend

Simply Wall Street, 23 AugCapital return

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

PGHH Forecast — Price Target — Prediction for 2027

TradingView, 26 JunAnalyst view

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

P&G Health Stock Tumbles 6% Even As Q1 Net Profit Surges 45%

NDTV Profit, 06 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong17.9/20

🟡Financial HealthAdequate12.5/20

🟢GrowthStrong16.1/20

🟢ProfitabilityStrong13.5/15

🟡ValuationFair9.7/15

🟡RiskModerate4.8/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 32%34.4%
✓Revenue growth stays above 6% a year8.2% CAGR
✓Free cash flow remains positive₹322 Cr
✓Debt / EBITDA stays below 2x0.0x
✓ROCE stays above 74%76.8%