Industry profile: Personal Care and consumer staples are the sectors that hardly affect any crisis. Because you can stop using tooth pests, Soap, the lifespan of the products is also high. Shelf life is also small. Investors see these companies as a secure place in crisis as maybe consumers may change habits about other things, but it isn’t easy. This is a perfect sector for investors seeking steady growth, dividend, and low volatility. As 70% of Gross National Product is consumer spending, and the consumer staples sector is an integral part, we can’t ignore it. Plus, this sector is hardly cyclical. If your income changes negatively, you can stop using Soap. Demand for Soap, tobacco, tooth pest and Dish wash will not change drastically, which is like a double-edged sword for the sector. You can not see growth in Financials or automobile companies, but you can hardly see them telling you that our revenue is also down.
Their profit per item is also tiny, but that factor is covered when the volume is high. So for this sector, Same-Store Sales growth and volume growth are more critical than Margin.
Company Profile: The company is a subsidiary of global giant Colgate Palmolive. It is mainly selling toothpaste, toothbrush, and oral care products. It also offers cosmetics. Under its “Hill’s Pet Nutrition” brand, it is also a manufacturer of veterinary products. the company is a well-known name in the household for oral care
Shareholding pattern: BSE Data
Financials and ratios : [table id=130 /]
Future prospectus: Patanjali Dant Kanti is a real competition for Colgate. HUL tried to compete with its Pepsodent. But now, as you can see, the company’s revenue is not increased in FY 17. Looking like the Moat was destroyed. Only support for the company stock in the company’s dividend payout and debt-free status.
