Weak topline growth performance: 5-year CAGR at 7.8%, 10-year CAGR at 5.5%
Reasons for weak performance: Decline in shaving frequency among men, increasing trend of sporting beards influenced by sportsmen and movie stars, lack of presence in Trimmers/Electric Shavers market, sale of Duracell business by parent company
Strong revenue growth in FY21: ~20% growth following a ~10% sales decline in FY20 due to Covid-related disruptions
Momentum during FY21-FY23E: Relative and absolute momentum at ~10% CAGR, in line with top peers
Changing factors/potential improvements:
Strong growth in women's shaving products under Gillette Venus brand, driving overall topline growth
Gillette Venus leading in brand recall and sales, cited ease of usage, better pricing, and fewer rashes/allergies as driving factors
Entry into electric shaving products/trimmers/epilators market with Braun brand, which is a major player globally
Campaigns targeting influencers like cricketers as brand ambassadors to shape consumer habits
Potential for premiumization in Oral Care segment, with Oral B brand as the second largest in the toothbrush category
Financial outlook:
Low one-year forward P/E multiple, attractive valuation after a significant decline in stock price
Healthy return ratios with ROCE of over 40%