Procter & Gamble Health Ltd. (PGHL) AI Stock Analysis

• Market Cap: ₹80.54B
• Dividend Yield: 3.28%
• Average Volume (3M): 310.00
• Price to Earnings (P/E): 30.5
• Beta (1Y): 0.57
• Revenue Growth: 3.01%
• EPS Growth: 22.98%
• Country: IN
• Employees: 1,336
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 16,599,382
• 10 Day Avg. Volume: 340
• 30 Day Avg. Volume: 310
• PEG Ratio: 1.37
• Price to Book (P/B): 15.96
• Price to Sales (P/S): 7.03
• P/FCF Ratio: 51.22
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹6,800.00
• Price Target Upside: 18.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 194
• Revenue Forecast (FY): ₹13.54B

• Rating: 73 Outperform
• Price Target: ₹5,458.00 ▼(-5.11% Downside)
• Action: Reiterated Date: 10/21/25
• Date: Action: Reiterated 10/21/25

Procter & Gamble Health Ltd. demonstrates strong financial performance with robust profitability and a solid balance sheet, contributing significantly to the overall score. The technical analysis indicates mixed signals with short-term bearish momentum but a long-term bullish trend. The valuation is slightly high, reflecting growth expectations, but the attractive dividend yield provides a buffer. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Very strong balance sheet

Extremely low leverage and a very high ROE indicate durable financial strength and capital efficiency. This supports investment capacity, dividend resilience and downside protection during downturns, enabling sustained strategic initiatives and long-term competitive positioning.

Robust cash generation

A near-1.0 free cash flow to net income ratio shows the business converts profits into cash efficiently. That durable cash generation funds capex, marketing and shareholder returns without heavy reliance on external funding, strengthening long-term financial flexibility.

Consistent profitability and revenue growth

Sustained margin expansion alongside mid-single-digit revenue growth reflects stable demand and pricing power in branded OTC health. This combination underpins predictable earnings and reinvestment ability, supporting long-term competitive advantage in consumer health.

Negative Factors

Declining gross profit margin

A slipping gross margin signals input cost or product mix pressure that can erode the durable profitability base. If structural cost inflation or competitive pricing persists, margin compression could reduce reinvestment capacity and weaken long-term return on sales.

Operational cash conversion lag

OCF below net income implies weaker cash conversion from operations, perhaps due to working capital trends. Persistent gaps constrain free cash flow availability for growth and shareholder returns and increase sensitivity to cyclical shocks absent operational improvements.

Weakness in FCF growth sustainability

A headline spike in FCF driven by a low base raises questions about repeatability. Reliance on one-off improvements can mask structural limits; sustainable long-term cash generation requires consistent revenue and margin traction rather than transient base effects.

Procter & Gamble Health Ltd. Business Overview & Revenue Model

Company Description

Procter & Gamble Health Limited manufactures and markets pharmaceuticals and chemicals in India. It provides over-the-counter products, vitamins, minerals, and supplements. The company offers its products under the Polybion, Neurobion, Evion, Nasivion, Livogen, and Seven Seas brands. Procter & Gamble Health Limited also exports its pharmaceutical products to Sri Lanka, Nepal, Myanmar, and Maldives. The company was formerly known as Merck Limited and changed its name to Procter & Gamble Health Limited in May 2019. The company was incorporated in 1967 and is headquartered in Mumbai, India. Procter & Gamble Health Limited is a subsidiary of Procter & Gamble Overseas India B.V.

How the Company Makes Money

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Procter & Gamble Health Ltd. Financial Statement Overview

Summary

Procter & Gamble Health Ltd. exhibits a strong financial position across all verticals. The income statement reflects robust profitability and growth, while the balance sheet indicates excellent financial stability with low leverage. The cash flow statement is positive, with strong cash generation capabilities. The company is well-positioned for future growth, though there is room for improvement in cost management and operational efficiency.

Income Statement

Procter & Gamble Health Ltd. demonstrates strong profitability with a consistent increase in net profit margin and EBIT margin over the years. The company has shown a healthy revenue growth rate of 7.42% in the most recent year, indicating robust sales performance. However, the gross profit margin has declined slightly, suggesting increased cost pressures. Overall, the income statement reflects a solid financial performance with room for improvement in cost management.

Balance Sheet

The balance sheet of Procter & Gamble Health Ltd. is very strong, characterized by a low debt-to-equity ratio of 0.014, indicating minimal leverage and financial risk. The return on equity is impressive at 58.21%, showcasing efficient use of shareholder funds to generate profits. The equity ratio is healthy, reflecting a strong capital structure. Overall, the balance sheet is robust, with excellent financial stability and low risk.

Cash Flow

The cash flow statement shows a positive trajectory with strong free cash flow to net income ratio of 0.95, indicating efficient cash generation relative to net income. The operating cash flow to net income ratio is slightly lower at 0.82, suggesting room for improvement in operational efficiency. The free cash flow growth rate is exceptionally high, but this is due to a low base effect. Overall, the cash flow position is solid, with potential for enhanced operational cash flow management.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	12.84B	12.18B	11.51B	12.30B	11.14B	10.09B
Gross Profit	8.88B	8.69B	8.09B	8.46B	7.61B	6.84B
EBITDA	4.20B	3.62B	3.03B	3.19B	2.65B	2.42B
Net Income	3.07B	2.51B	2.01B	2.29B	1.93B	1.77B
Balance Sheet
Total Assets	8.94B	7.94B	7.94B	11.01B	8.94B	9.86B
Cash, Cash Equivalents and Short-Term Investments	2.86B	1.89B	2.44B	4.53B	3.19B	4.64B
Total Debt	95.50M	76.20M	95.60M	120.00M	28.30M	76.10M
Total Liabilities	2.75B	2.57B	2.56B	3.50B	2.77B	2.82B
Stockholders Equity	6.20B	5.37B	5.38B	7.51B	6.16B	7.04B
Cash Flow
Free Cash Flow	2.12B	1.67B	2.07B	1.94B	1.32B	1.95B
Operating Cash Flow	2.21B	1.76B	2.28B	2.36B	1.70B	2.47B
Investing Cash Flow	13.60M	24.40M	-68.70M	-215.00M	-255.40M	-322.70M
Financing Cash Flow	-2.10B	-2.35B	-4.18B	-984.70M	-2.89B	-3.87B

Procter & Gamble Health Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5751.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PGHL, the sentiment is Negative. The current price of 5751.7 is above the 20-day moving average (MA) of 4976.56, above the 50-day MA of 5247.15, and below the 200-day MA of 5797.57, indicating a bearish trend. The MACD of -110.88 indicates Negative momentum. The RSI at 39.98 is Neutral, neither overbought nor oversold. The STOCH value of 44.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PGHL.

Procter & Gamble Health Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PGHL	73 Outperform	₹80.54B	30.50	―	3.28%	3.01%	22.98%
SYMPHONY	70 Outperform	₹54.84B	73.49	―	1.43%	-19.72%	-44.03%
SURYAROSNI	70 Outperform	₹44.89B	18.80	―	2.03%	0.31%	1.98%
ZYDUSWELL	66 Neutral	₹128.49B	-90.62	―	0.28%	14.55%	-20.61%
JYOTHYLAB	64 Neutral	₹80.60B	31.99	―	1.24%	1.62%	-7.32%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
EVEREADY	55 Neutral	₹22.30B	80.19	―	0.46%	7.37%	-39.19%

Procter & Gamble Health Ltd. Corporate Events

Procter & Gamble Health Posts Strong Q3 FY26 Results, Announces ₹160 Interim Dividend with Special Payout

Procter & Gamble Health Limited reported unaudited financial results for the quarter ended 31 December 2025, with revenue from operations rising to ₹37,386 lakh and net profit for the quarter at ₹7,759 lakh, contributing to a nine‑month net profit of ₹23,231 lakh. The board approved these results and simultaneously declared an interim dividend of ₹160 per equity share for FY 2025‑26, which includes a one‑time special dividend of ₹50 per share, with a record date of 12 February 2026 and payment expected on or before 4 March 2026, signaling strong cash generation and shareholder‑return focus despite modest year‑on‑year profit softness after earlier exceptional items.