Gillette India (GILLETTE)

FairStock Score: 60/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Zero debt and a fortress balance sheet with Debt/Equity of 0.00
• Extraordinary returns on capital: ROE 60.65% and ROCE 56.06%
• Strong pricing power reflected in profit growth of 21.57% versus sales growth of 8.46%
• High promoter holding of 75% and a healthy Piotroski F-Score of 8/9
• Excellent solvency position with Altman Z-Score of 12.17

Concerns

• Very expensive valuation: P/E of 43.82 and P/B of 25.73 offer little margin of safety
• Graham Number of ₹1,159.45 implies margin of safety of -619.52% at the current price
• DCF intrinsic value of ₹4,935.42 is well below the market price of ₹8,075.95
• Moderate sales growth of 8.46% and PEG of 2.46 make the premium multiple difficult to justify

AI Analysis

At ₹8,075.95, Gillette India is a superb business, but not obviously a value investment. Start with the business quality: zero debt, promoter holding of 75%, ROE of 60.65% and ROCE of 56.06%. Those returns come from a durable shaving franchise with recurring consumption and pricing power. That pricing power shows up in profit growth of 21.57% versus sales growth of 8.46%. The latest quarter also confirms the economics: sales of ₹790 Cr and net profit of ₹172 Cr mean unusually high margins. The Piotroski score of 8/9 and Altman Z-score of 12.17 tell me the balance sheet is safe, and the FairStock Score of 63/100 characterises the quality as steady. Now, valuation. Benjamin Graham said price is what you pay, value is what you get. At a P/E of 43.82 and P/B of 25.73, the market is paying a very high price for this quality. Book value is only ₹313.93. The Graham Number works out to ₹1,159.45, leaving a margin of safety of negative 619.52%. Even the DCF intrinsic value of ₹4,935.42 is far below the current price of ₹8,075.95. So although the company is a wonderful business, it is not a wonderful buy at this price. The dividend yield of 1.44% is small compensation for valuation risk. I would classify Gillette India as a Stalwart: a predictable, high-return consumer franchise, not a fast grower, cyclical, or turnaround. Sales growth of 8.46% is decent but cannot justify a PEG of 2.46. For a disciplined value investor, the decision is clear: keep the business on the watchlist, but wait for a margin of safety before committing capital.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer