Procter & Gamble Hygiene & Health Care Upgraded to 'Hold' Rating by MarketsMOJO

Procter & Gamble Hygiene & Health Care, a leading FMCG company, has recently been upgraded to a 'Hold' rating by MarketsMOJO. This decision is based on the company's high management efficiency, with a ROE of 59.87%, 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, the company has shown poor long-term growth, with only a 7.81% annual growth in Net Sales and a 1.94% growth in Operating profit over the last 5 years. In addition, the recent results for March 2024 have been flat, with a low DEBTORS TURNOVER RATIO and a decrease in PAT(Q) at Rs 154.37 crore.

The stock also has a high ROE of 70.8, making it very expensive with a Price to Book Value of 51.3. However, it is currently trading at a fair value compared to its historical valuations. In the past year, the stock has generated a return of 11.36%, while its profits have only risen by 30.9%, resulting in a PEG ratio of 2.4.

Overall, Procter & Gamble Hygiene & Health Care has underperformed the market in the last year, with a return of 11.36% compared to the market's return of 38.60%. While the stock has its strengths, such as high management efficiency and a bullish technical trend, it also has weaknesses in terms of long-term growth and expensive valuation. Therefore, MarketsMOJO has upgraded the stock to a 'Hold' rating, suggesting a cautious approach for investors.