This segment includes toothpastes, shaving creams, shampoos, lotions, deodorants, fairness creams, sanitizers, etc. This segment enjoys very good valuations as everybody is talking about the consumer spending story of India. These companies would sale more products and make for profits per product because of the burgeoning middle class. This sector rides on the India growth story. Many companies have zero or very low borrowing. Market cap of these companies range from 3 to 8 times the sales of these companies. These companies also have 12 to 24% NPMs. These are expected to grow their sales every quarter. Colgate, P&G, Gillette and HUL are all subsidiaries of big MNCs. Companies like Marico, Bajaj corp, Dabur and Godrej depend on some exports to Asia, middle east and Africa as well.
Company | Products |
Bajaj Corp Ltd. | Hair care (Bajaj Amla and Bajaj Almond drops are popular names) |
Jyothy Laboratories Ltd. | Ujala, Maxo, Exo and Henkel products |
Procter & Gamble Hygiene & Healthcare Ltd. | Ariel, Tide, Pantene, Head and Houlders, Rejoice, Pampers |
Godrej Industries Ltd. | Owns Godrej consumer products and edible oils, chemicals and real estate (much more than a consumer play) |
Gillette India Ltd. | Gillette shaving products |
Marico Ltd. | Parachute, kaya skin clinic, Saffola |
Colgate-Palmolive (India) Ltd. | Colgate oral care products, Palmolive personal care, |
Godrej Consumer Products Ltd. | Cinthol, Godrej (hair dye, soaps), HIT, GoodKnight, Jet |
Dabur India Ltd. | Dabur (Health, Ayurveda, oral care), Babool, Vatika, Fem, Odomos, Odonil, Real (juices), Hajmola |
Hindustan Unilever Ltd. | Dove, Surf, Wheel, Kissan, Knorr, Bru, 3 Roses, Kwality Walls, Axe, lakme, Pears, Liril, Pepsodent |
HUL is huge player with 72K Cr market cap. Dabur, Colgate, Marico and Godrej have market cap between 10K Cr and 20K Cr.
Company | price | bse code | nse code | marketcap | high | low |
Bajaj Corp Ltd. | 117.35 | 533229 | BAJAJCORP | 1730.91 | 162.4 | 73.3 |
Jyothy Laboratories Ltd. | 218.8 | 532926 | JYOTHYLAB | 1763.53 | 321.95 | 174.8 |
Procter & Gamble Hygiene & Healthcare Ltd. | 2017.8 | 500459 | PNG | 6557.85 | 2311 | 1460 |
Godrej Industries Ltd. | 219.8 | 500164 | GODREJIND | 6980.85 | 247.7 | 155 |
Gillette India Ltd. | 2156.6 | 507815 | GILLETTE | 7030.52 | 2210 | 1487.3 |
Marico Ltd. | 166 | 531642 | MARICO | 10202.36 | 162.3 | 112.1 |
Colgate-Palmolive (India) Ltd. | 1008.6 | 500830 | COLGATE | 13716.96 | 1030.9 | 783.2 |
Godrej Consumer Products Ltd. | 437.8 | 532424 | GODREJCP | 14167.21 | 479.7 | 324 |
Dabur India Ltd. | 111.75 | 500096 | DABUR | 19452.32 | 122 | 86.7 |
Hindustan Unilever Ltd. | 334 | 500696 | HUL | 72167.38 | 346.5 | 249.9 |
HUL, P&G, Jyothi labs, Bajaj corp, Gillette and Colgate are debt free. Marico, Godrej and Dabur have low debt. Godrej Industries pays more than 5% of the sales as interest on the loans – This is the worry-some. All others don’t seem worry-some to me.
Company | BAL Sheet | reserves | secured loans | unsecured loans |
Bajaj Corp Ltd. | Mar ' 10 | 15.41 | ||
Jyothy Laboratories Ltd. | Mar ' 10 | 391.66 | 0.17 | |
Procter & Gamble Hygiene & Healthcare Ltd. | Jun ' 10 | 502.18 | ||
Godrej Industries Ltd. | Mar ' 11 | 1058.4 | 83.23 | 470.99 |
Gillette India Ltd. | Jun ' 10 | 538.4 | ||
Marico Ltd. | Mar ' 11 | 811.68 | 332.42 | 220.07 |
Colgate-Palmolive (India) Ltd. | Mar ' 11 | 370.45 | 0.05 | |
Godrej Consumer Products Ltd. | Mar ' 11 | 1501.32 | 10.06 | 262.43 |
Dabur India Ltd. | Mar ' 11 | 927.09 | 17.57 | 235.78 |
Hindustan Unilever Ltd. | Mar ' 11 | 2417.97 |
Not all companies are heavy PE stocks in spite of the huge competition. This is because these companies have performed profitably and have shown growth previously and are expected to show similar or better shows going forward.
Company | Sales | net profit | interest | NPM | PE | |
Bajaj Corp Ltd. | Mar ' 11 | 359.44 | 84.1 | 0.11 | 22.34 | 20.58 |
Jyothy Laboratories Ltd. | Mar ' 11 | 608.02 | 80.27 | 0.3 | 12.79 | 21.96 |
Procter & Gamble Hygiene & Healthcare Ltd. | Jun ' 10 | 904.46 | 179.76 | 0.02 | 19.26 | 36.48 |
Godrej Industries Ltd. | Mar ' 11 | 1145.84 | 133.43 | 63.12 | 11.44 | 52.31 |
Gillette India Ltd. | Jun ' 10 | 852.48 | 137.1 | 0.04 | 15.69 | 51.28 |
Marico Ltd. | Mar ' 11 | 2353.71 | 315.33 | 29.92 | 13.29 | 32.35 |
Colgate-Palmolive (India) Ltd. | Mar ' 11 | 2296.86 | 402.58 | 3.29 | 17.3 | 34.07 |
Godrej Consumer Products Ltd. | Mar ' 11 | 2442.64 | 434.96 | 8.76 | 17.57 | 32.57 |
Dabur India Ltd. | Mar ' 11 | 3287.67 | 471.43 | 12.93 | 14.23 | 41.26 |
Hindustan Unilever Ltd. | Mar ' 11 | 19735.2 | 2305.97 | 0.24 | 11.54 | 31.29 |
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