Gillette shares in India close to record high 1Q profit, see details

Shares of Gillette India rose 11% in early trade on Tuesday after the razor and shaving cream maker reported a 43.5% rise in profit to Rs 133.01 crore in the September 2024 quarter from Rs 92.69 crore in corresponding quarter of the previous fiscal year. Shares of Gillette in India rose 11.51% to Rs 9,537 against the previous close of Rs 8,552.90 on the BSE. The market capitalization of the firm increased to Rs 30,157 crore.

A total of 0.12 lakh shares of the firm changed hands at a turnover of Rs 11.30. The stock is up 48 percent in a year and has gained 80 percent in two years. The stock fell to a 52-week low of Rs 5,949.50 on 21-Dec-2023 and touched a record high of 9,550 Rs on 19-Sep-24.

The stock has a one-year beta of 0.4, indicating very low volatility over the period.

In terms of technical indicators, Gillette India’s Relative Strength Index (RSI) stands at 45.6, indicating that the stock is not overbought or oversold on the charts.

Gillette India shares are trading above their 5, 20, 30, 50, 100 and 200 day moving averages. Sales rose 17.1% to 781.8 million rupees in the second quarter, compared to 667.5 million rupees in the corresponding period last year.

EBITDA or operating profit rose 38.3% to Rs 190.49 crore in the latest quarter against Rs 137.73 crore in the corresponding quarter of the previous fiscal. EBITDA margin improved to 24.4% from 20.6%.

The main driving force of growth was the cosmetics business. Care revenue rose 23% to Rs 648.9 million in the first quarter from Rs 527.47 million in the previous year.

Kumar Venkatasubramanian, Managing Director, Gillette India, said, “For the quarter, we delivered strong double-digit growth in both revenue and profit. These results are a testament to our teams’ execution of an integrated growth strategy to which we remain committed – a focused product portfolio in everyday use categories where performance drives brand choice, preference (product performance, packaging, brand communication, retail and consumer and consumer value), productivity, constructive change, and an agile and accountable organization – all aimed at ensuring sustainable, balanced growth and value creation.”