Procter & Gamble Health downgraded to 'Hold' by MarketsMOJO, shows positive results in recent quarter

Procter & Gamble Health, a midcap pharmaceutical and drugs company, has recently been downgraded to a 'Hold' by MarketsMOJO. This decision was based on the company's high management efficiency, with a ROE of 25.87%, and a low Debt to Equity ratio of 0 times. Additionally, the company has shown positive results in September 2024, with the highest ROCE (HY) at 53.71%, DEBTORS TURNOVER RATIO (HY) at 13.49 times, and NET SALES (Q) at Rs 313.41 crore.
Technically, the stock is currently in a Mildly Bullish range, with the key technical factor of MACD being Bullish since 13 November 2024. The company also has a high institutional holding of 21.45%, indicating that these investors have better capability and resources to analyze the fundamentals of the company compared to retail investors.

However, the company has shown poor long-term growth, with Net Sales growing at an annual rate of 5.34% and Operating profit at 17.91% over the last 5 years. With a ROE of 43.2, the company also has a Very Expensive valuation with a 16 Price to Book Value. However, the stock is currently trading at a discount compared to its average historical valuations.

In the past year, the stock has generated a return of 1.21%, while its profits have only risen by 0.5%. This has resulted in a high PEG ratio of 36.9. On the positive side, the company has a high dividend yield of 4.8% at the current price.

Overall, Procter & Gamble Health has underperformed the market in the last year, with a return of 1.21% compared to the market's (BSE 500) return of 26.05%. While the company has shown positive results in the recent quarter, its long-term growth and expensive valuation may be a cause for concern for investors.