ICICI Direct has given Hold recommendation for Procter and Gamble Health with a target price of Rs. 4500 in its research report issued on Aug 30, 2022

ICICI Direct’s research report on Procter and Gamble Health

Procter & Gamble Health is a leading pharma cum OTC company with key focus on vitamins, minerals, supplement (VMS) category. It has legacy brands in the VMS category like Neurobion Forte, Polybion, Evion (all vitamins), Livogen (iron supplement), Nasivion (nasal decongestant), Seven Seas (vitamin- substitute for malt based health drinks) • The company was earlier known as Merck Ltd and was part of Merck KGaA, Germany. In 2018, it (as a consumer health business) was acquired by P&G.

Outlook

We maintain HOLD on the stock as we look for above-average traction in core VMS portfolio as well as maintaining momentum in non-core brands. Valued at Rs 4500 i.e. 32x P/E on FY24E EPS of Rs 140.6.

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