Gillette - A close shave!
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=1388
Printed Date: 21/Apr/2025 at 2:35am
Topic: Gillette - A close shave!
Posted By: khokhadream
Subject: Gillette - A close shave!
Date Posted: 21/Nov/2007 at 12:05pm
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Well this applies to overall fmcg space. But you need to take into account that indians were not using gillette products initially and there is huge shift from traditional to more advanced and braded products inspite of the regular growth. Gillette being undisputed world leader will grow in india as well.
If you look at the past two quarters it is growing 40%
http://www.moneycontrol.com/india/news/pressmarket/gillette-india-salesby-record-36-pbt56/18/58/309820 - http://www.moneycontrol.com/india/news/pressmarket/gillette-india-salesby-record-36-pbt56/18/58/309820
http://www.moneycontrol.com/india/news/pressmarket/gillette-india-net-profit44-dividend-rs-175share/15/09/299735 - http://www.moneycontrol.com/india/news/pressmarket/gillette-india-net-profit44-dividend-rs-175share/15/09/299735
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Replies:
Posted By: Vivek Sukhani
Date Posted: 21/Nov/2007 at 10:32pm
Although I believe its wrong for me to indulge in someone else's thought process, but I liked Smartcat's comment and hence this post. Your posts are indeed full of humour, but may I know Smartcat which analysts are you talking about? I rarely come across anyone bullish on FMCG, and at times I feel like as if I am a loner fighting it out with best of best minds, while advocating for FMCG companies.....
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Posted By: India_Bull
Date Posted: 21/Nov/2007 at 10:49pm
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Lot of people were bullish on HLL few years ago and when I was studying for my MBA, HLL was the dream company in my mind to work for , but no one is bullish on the FMCG companies as Smartjee said, however Sharekhan throws out some buy calls on FMCG companies occasionaly.
When FMCG companies come to limelight or stock prices appreciate , one should safely assume end of the bull run !! ------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: Vivek Sukhani
Date Posted: 21/Nov/2007 at 10:52pm
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Ten years hence people will use IT as a substitute for FMCG for this piece of observation regarding the end of bull market, Sandeep..... |
Posted By: smartcat
Date Posted: 21/Nov/2007 at 11:41pm
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When I don't remember the name of an analyst, I just call him a suit boot waley. So do you think this formula is correct?
FMCG sector = GDP + Inflation
Of course, there would be individual companies that might grow at a faster rate because of new product launches.
Is this sustainable? The article mentions that the growth was due to synergies with P&G. There will still be synergies next year but growth rate might not be this high.
And I didn't know that Duracell was a Gillette brand!
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Posted By: basant
Date Posted: 21/Nov/2007 at 7:10am
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Actually Gilette screwed itself up by over paying for the Duracel brand. Sometimes I wonder whether the country to country comparisions can go down so well. For example we have Sikhs in India who never shave; there are several muslims who also like to keepa beard; many sadhus and mahatamas also sport beards so that blanket comparision with india and US on shaving has these fine prints which are never discussed.
These three categories make up for some 20% of India's population.
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: Vivek Sukhani
Date Posted: 21/Nov/2007 at 8:24am
| Gillette has a wonderful pricing power. only the valuations may be something which should be considered. Its an area where the biggest predator of the moment, ITC will not be making a fpray. So that ways its a a safer FMCG bet. |
Posted By: sajanvm
Date Posted: 21/Nov/2007 at 9:19am
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Will Gillette merged into P&G in India ? I hold P&G - its a 2 product company but is a cash generating machine - ofcourse, they are all unloved nowadays. ------------- Sajan |
Posted By: khokhadream
Date Posted: 21/Nov/2007 at 9:56am
| I have no idea but is there any chance that gillette introduces its best products through some 100% subsdiary in future. I have seen this happening in pharma MNC's in india. |
Posted By: WarrenJr
Date Posted: 22/Nov/2007 at 4:06pm
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I always like this brand (i use it myself). Very powerful monopoly.
What are the valuations right now for this. It hasn't moved much.
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Posted By: Vivek Sukhani
Date Posted: 22/Nov/2007 at 9:03am
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These are huge huge and powerful brands. Nestle, Colgate, Horlicks, gillette, Vicks etc. are extremely powerful brands. I will like to see them come down rather than go up. Worth an accumulation. I had reckitt as I had a big fancy for Dettol but unfortunately had to abandon that company. Lets see wht happens to all of these brands.... |
Posted By: sajanvm
Date Posted: 22/Nov/2007 at 10:18am
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P&G's growth will come from Whisper (sanitary napkins). Usage of sanitary napkins still has a long long way to go in India.
Vicks ofcourse is a cash cow.
The recently divested their contract manufacturing operations. Now, P&G is a pure branded play - margins will be much higher than before. ------------- Sajan |
Posted By: WarrenJr
Date Posted: 23/Nov/2007 at 8:27pm
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Is Gillette India only Gillette or is it completely merged with P&G. When Gillette stock is priced, does it include P&G value in it?
Reply appreciated.
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Posted By: khokhadream
Date Posted: 12/Dec/2007 at 12:51pm
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Gillette is silently moving up. In about 10 days it has appreciated 25%
Disclosure: i have moderate position in gillette
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Posted By: WarrenJr
Date Posted: 12/Dec/2007 at 12:51pm
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this one is going higher and higher every day... Could buy only limited quantity at 850..but was able to average up..
I visited different retail stores and all of them had mostly Gillette blades...
As Warren Buffet said " I sleep easy thinking that billion men are growing beard while they sleep"
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Posted By: khokhadream
Date Posted: 12/Dec/2007 at 12:58pm
| can anybody tell us about the valuation of gillette. |
Posted By: WarrenJr
Date Posted: 12/Dec/2007 at 1:51pm
| go to moneycontrol.com and look it up in the quote page of Gillette |
Posted By: WarrenJr
Date Posted: 14/Dec/2007 at 3:38pm
| Wished i bought a lot more of this...Too late...upper circuit 20 % today .. |
Posted By: WarrenJr
Date Posted: 17/Dec/2007 at 9:26pm
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As per SP Tulsian, open offer may be coming. Stock expected to touch 1800.
Question is should be buy at 1450 level ?
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Posted By: jain208
Date Posted: 02/Sep/2008 at 4:26pm
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http://www.bseindia.com/qresann/news.asp?newsid=%7b9A932E7C-C51D-4478-9529-2B760FDCE41D%7d¶m1=1 - Gillette India announces results
Gillette India has announced the annual results. Please see the link above. It has also declared a dividend of 12.5 Rs. ------------- ======================================= The more it changes, the more it’s the same thing. |
Posted By: jain208
Date Posted: 02/Sep/2008 at 4:27pm
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Basant ji,
The spelling of Gillette in topic heading is wrong. Could you please change it? Thanks in advance, Abhishek. ------------- ======================================= The more it changes, the more it’s the same thing. |
Posted By: paragdesai
Date Posted: 02/Sep/2008 at 5:05pm
Hi Abhishek,
I can not find anything special in the result. There is some restructuring cost which they credited & debited each qtr. for last one year or so amounting about Rs.50 Cr. which comes under the head other expenses. If this become zero in future after completion of restructuring will the net margin improve?
Surprisingly stock remain at the same level despite avg. result. So something is there for sure.
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Posted By: jain208
Date Posted: 02/Sep/2008 at 5:21pm
I think the results are decent. As per the management press release, sales have grown by 16.6 % yoy and by 20% qoq, which is quite decent, if not great. After adjusting for exceptional items, PAT for year has increased by 16% from 92 crores to 107 crores. ------------- ======================================= The more it changes, the more it’s the same thing. |
Posted By: paragdesai
Date Posted: 04/Jun/2009 at 6:42am
http://www.livemint.com/2009/06/04211122/A-new-definition-of-luxury.html?h=B - A new definition of luxury------------- Luck is what happens when preparation meets opportunity .... |