Procter & Gamble Hygiene & Health Care Downgraded to 'Sell' by MarketsMOJO

Procter & Gamble Hygiene & Health Care, a largecap FMCG company, has recently been downgraded to a 'Sell' by MarketsMOJO on October 17, 2024. This decision was based on the company's poor long-term growth, negative results in the last quarter, and a bearish technical trend.
Over the past five years, the company's net sales have only grown at an annual rate of 7.37%, while operating profit has only increased by 1.94%. In the most recent quarter, the company's profits have fallen by -46.4%, with cash and cash equivalents at their lowest at Rs 588.20 crore and PBDIT at its lowest at Rs 118.29 crore.

Technically, the stock is currently in a mildly bearish range, with the trend deteriorating from sideways on October 15, 2024. The Bollinger Band, a key technical factor, has also been bearish since the same date.

In terms of valuation, the company has a very expensive ROE of 87.1 and a price to book value of 69.5. However, it is currently trading at a discount compared to its average historical valuations. Despite this, the stock has generated a negative return of -4.69% in the past year, with profits falling by -0.5%.

Furthermore, the company has also underperformed the BSE 500 index in the last 3 years, 1 year, and 3 months. However, it does have high management efficiency with a ROE of 59.87% and a low debt to equity ratio of 0 times.

The majority shareholders of Procter & Gamble Hygiene & Health Care are the promoters, indicating their confidence in the company. Overall, the recent downgrade to 'Sell' by MarketsMOJO highlights the company's below par performance in both the long-term and near-term.