Gillette India - Seeing Positive Consumption Trends; Maintain Neutral: Yes Securities

Yes Securities Report

We recently participated in Gillette India Ltd.'s Investors & Analysts Call held by the management to highlight company's performance, strategies and business outlook. Key takeaways:

1. Seeing positive consumption trends with greenshoots in rural markets but cautious about unemployment and wages data,

2. Gillette India has seen 1.5 times increase in its reach and coverage in last three years,

3. Male grooming continues to see highest ever share even in competitive market environment,

4. Within the large female hair removal market, razors have seen fastest growth and Venus has doubled its revenues in last five years growing in double digits,

5. Gillette saw structural margin improvement of ~200 basis points in recent quarter through productivity and innovations.

We recently (post the June-24 quarterly results) downgraded the stock to Neutral rating from Buy after it delivered ~63% post our initiation on Aug, 30, 2023.

Information provided during the analyst meet does not lead to any change in our earnings or target price, hence we maintain our target price of Rs 9,035, targeting ~56 times on Sep’26E EPS (similar to its five-year average forward multiple).

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