Industry Profile: Personal Care and consumer staples are the sectors that hardly get affected by any crisis. Because you can’t stop using tooth pests, Soap, the lifespan of the products is also high. Shelf life is also small. Investors see this company as a secure place in crisis as maybe consumers may change habits about other things, but it’s complicated. 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 important part, we can’t ignore it. Plus, this sector is hardly cyclical. If your income changes negatively, you can’t stop using Soap. Demand for Soap, tobacco, tooth pest and Dish wash will not change drastically; that is like a double-edged sword for the sector. You can not see growth like 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. That’s why Same-Store Sales and volume growth are more important for this sector than Margin.
Company Profile: The company is a market leader in Indian Consumer Staples and Personal Care. It operates in 20 categories: soaps, detergent, shampoo, ice cream, instant coffee, toilet cleaner, etc. The company’s extensive product portfolio includes some well-known brands, including Domex, Bru Coffee, Vim Dishwash, and Axe Deodorant.
Shareholding Pattern: BSE Data
Financials and Ratio : [table id=54 /]
Future Prospects: Having parentage like Unilever, where even Warren Buffett wants to invest, supports the company. In addition, the brand’s company holdings in India are significant, like Lifebuoy and Brook Bond. Though Patanjali is still giving them competition, it is a well-known company with a good reputation and ratios. If available at a reasonable price, definitely it’s a Buy.
