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

• Market Cap: ₹87.10B
• Dividend Yield: 3.28%
• Average Volume (3M): 310.00
• Price to Earnings (P/E): 28.5
• Beta (1Y): 0.56
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ₹5,850.00 ▲(1.71% Upside)

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 low leverage and high ROE

A near-zero debt-to-equity ratio and very high ROE indicate durable financial strength and conservative capital structure. This reduces refinancing and solvency risk, allowing sustained investment in brands and R&D while supporting long-term shareholder returns and resilience through cycles.

Strong free cash flow generation

A free cash flow to net income ratio near 1.0 shows the company converts reported earnings into cash efficiently. This supports durable funding for dividends, product development, and working capital, enhancing strategic flexibility and reducing reliance on external financing.

Consistent profitability and margin expansion

Sustained expansion in EBIT and net margins reflects operational strength and pricing or efficiency advantages in consumer healthcare. Durable margin improvement underpins free cash flow and reinvestment capacity, supporting competitive positioning and long-term profit sustainability.

Negative Factors

Declining gross profit margin

A shrinking gross margin signals rising input costs or pricing pressure that can erode long-term profitability if not offset by pricing power or cost control. Persistent gross margin pressure would reduce cash available for marketing, innovation, and margins over multiple quarters.

Operational cash conversion lags net income

Operating cash flow converting to 0.82 of net income suggests earnings quality and working capital management have room for improvement. Over time, weaker cash conversion can constrain reinvestment, dividend sustainability, and make earnings more vulnerable to non-cash items.

Modest reported revenue growth

Single-digit (around 3%) top-line growth points to slower market share expansion in a competitive consumer-health market. Absent acceleration, modest revenue growth can limit operating leverage, making it harder to improve margins materially and sustain higher long-term investment levels.

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

PGHL generates revenue primarily through the sale of its health-related products, which are marketed under well-known brands. The company utilizes a multi-channel distribution strategy, including retail partnerships, e-commerce platforms, and direct-to-consumer sales. Key revenue streams include prescription and over-the-counter medications, vitamins and supplements, and oral hygiene products. Additionally, PGHL benefits from strategic partnerships with healthcare providers and organizations that enhance product visibility and consumer trust. The company's strong brand equity and continued investment in research and development also contribute significantly to its earnings by ensuring a steady pipeline of innovative health solutions.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.98B	12.18B	11.51B	12.30B	11.14B	10.09B
Gross Profit	9.36B	8.69B	8.09B	8.46B	7.61B	6.84B
EBITDA	3.85B	3.62B	3.03B	3.19B	2.65B	2.42B
Net Income	2.84B	2.51B	2.01B	2.29B	1.93B	1.77B
Balance Sheet
Total Assets	0.00	7.94B	7.94B	11.01B	8.94B	9.86B
Cash, Cash Equivalents and Short-Term Investments	1.89B	1.89B	2.44B	4.53B	3.19B	4.64B
Total Debt	0.00	76.20M	95.60M	120.00M	28.30M	76.10M
Total Liabilities	-5.37B	2.57B	2.56B	3.50B	2.77B	2.82B
Stockholders Equity	5.37B	5.37B	5.38B	7.51B	6.16B	7.04B
Cash Flow
Free Cash Flow	459.90M	1.67B	2.07B	1.94B	1.32B	1.95B
Operating Cash Flow	492.20M	1.76B	2.28B	2.36B	1.70B	2.47B
Investing Cash Flow	-500.00K	24.40M	-68.70M	-215.00M	-255.40M	-322.70M
Financing Cash Flow	-1.34B	-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: Positive
• 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 5390.60, above the 50-day MA of 5578.77, and below the 200-day MA of 5812.09, indicating a bearish trend. The MACD of -102.48 indicates Positive momentum. The RSI at 31.57 is Neutral, neither overbought nor oversold. The STOCH value of 20.71 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	₹87.10B	28.48	―	3.28%	3.01%	22.98%
SYMPHONY	70 Outperform	₹65.07B	39.89	―	1.43%	-19.72%	-44.03%
ZYDUSWELL	66 Neutral	₹127.71B	64.19	―	0.28%	14.55%	-20.61%
SURYAROSNI	63 Neutral	₹55.85B	16.94	―	2.03%	0.31%	1.98%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
JYOTHYLAB	61 Neutral	₹89.42B	25.71	―	1.24%	1.62%	-7.32%
EVEREADY	55 Neutral	₹24.01B	51.35	―	0.46%	7.37%	-39.19%