Motilal Oswal Retains 'Neutral' Stance On P&G Post Q1 Results — Check Target Price

P&G's posted a flat YoY revenue growth at Rs 9.4 billion (a miss) in Q1 FY26 vs ~10% growth in the base quarter. Revenue growth was weak in the last four quarters as well.

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Motilal Oswal Report

We broadly retain our earnings per share estimates for FY26/FY27. Two factors make Procter and Gamble Hygiene and Health Care Ltd. an attractive long-term core holding:

1. high growth potential for the feminine hygiene segment (65-68% mix of FY24 sales), coupled with the potential for market share gains; this is aided by strategic initiatives, including the fortification of significant market advantages; and

2. the potential to sustain high operating margins from the long-term premiumization trend in the feminine hygiene segment. 

With a portfolio of essentials and healthcare, P&G remained focused on product innovation-led customer acquisition. Penetration play would continue but at a stable pace, despite the high scope of user additions.

The stock trades at rich valuations of 52x/47x FY26E/FY27E P/E. Further, we do not see any medium-term trigger. Reiterate Neutral with a target price of Rs 15,000, based on 50x Jun'27E EPS.

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