Procter & Gamble Health Upgraded to 'Hold' by MarketsMOJO, Offers Stable Investment in Pharma Industry

Jul 16 2024 06:20 PM IST
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Procter & Gamble Health, a midcap pharmaceutical company, has been upgraded to a 'Hold' by MarketsMojo due to its high management efficiency and low Debt to Equity ratio. However, concerns remain about its long-term growth, with modest growth in Net Sales and a decline in profits. The stock offers a high dividend yield and may be a stable investment option in the pharma industry.
Procter & Gamble Health, a midcap pharmaceutical company, has recently been upgraded to a 'Hold' by MarketsMOJO. This decision is based on the company's high management efficiency, with a ROE of 25.87%, and a low Debt to Equity ratio of 0 times. The stock is also currently in a Mildly Bullish range, with technical indicators such as MACD, Bollinger Band, and KST showing a bullish trend.

However, there are some concerns regarding the company's long-term growth. Over the last 5 years, the company has only seen a modest growth in Net Sales at 5.79% and Operating profit at 17.91%. In the recent quarter, the company's PAT(Q) has fallen by -21.3%, and DEBTORS TURNOVER RATIO(HY) is at its lowest at 9.11 times. PBT LESS OI(Q) has also seen a decline of -17.82%.

With a ROE of 26.6, the company's valuation is considered to be Very Expensive with a 10.8 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 2.50%, but its profits have fallen by -11.1%. On the positive side, the company offers a high dividend yield of 4.8%.

In the last 1 year, Procter & Gamble Health has underperformed the market, with a return of only 2.50% compared to the market's (BSE 500) return of 37.74%. Majority of the company's shareholders are promoters, indicating their confidence in the company's future prospects. Overall, while the stock may not have a strong growth potential, it may be a good option for investors looking for a stable and reliable investment in the pharma industry.
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