Shares of Procter & Gamble Health rose sharply in Monday’s trade amid heavy volumes, extending their upward move for the second consecutive session. The stock zoomed 15.24 per cent to hit a day high of Rs 4,721.20 over its previous close of Rs 4,096.95. A total of 4,439 shares changed hands today on BSE, which was more than 10 times higher compared to P&G Health’s two-week average volume of 430 shares. Turnover on the counter stood at Rs 2.01 crore, commanding a market capitalisation (m-cap) of Rs 7,678.79 crore.
The company reported a net profit of Rs 76.80 crore in the quarter that ended December 2022 (Q3 FY23), which is higher by 71.28 per cent as compared to Rs 44.84 crore in the same period last year. P&G Health also declared a sizable dividend of Rs 45 per share (face value of Rs 10, each). The dividend would be paid on or before March 5, 2023, P&G Health said.
On the technical front, resistance on the counter could be seen at Rs 4,660, an analyst said. “Procter & Gamble Health has strong resistance of Rs 4,660 on the daily charts. Investors should book profits at current levels as the stock price is now overbought. Ideal support levels to buy will be Rs 4,120-4,220,” said AR Ramachandran from Tips2trades.
The stock was last seen trading higher than 5-day, 20-, 50-, 100- and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 82.09. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 33.86.
P&G Health has an average target price of Rs 4,500, Trendlyne data showed, suggesting a potential downside of 2.53 per cent. The scrip has a one-year beta of 0.4, indicating low volatility.
Commenting on the quarterly results, Milind Thatte, Managing Director, P&G Health, said, “We delivered sales of Rs 596.6 crores for half a year, up by 10 per cent over a year ago, despite macroeconomic challenges, including rising inflation and high input costs. We have witnessed consistent growth over the second quarter and an overall promising first half of the year.”
The company, in an exchange filing today, stated that it has reappointed Thatte as Managing Director for a further period of five years, effective April 1, 2023, subject to approval of shareholders of the company.
P&G Health is one of India’s largest VMS companies involved in manufacturing and marketing vitamins, minerals, and supplements products — including Neurobion, Livogen, SevenSeas, Evion, Polybion and Nasivion, the exchange filing further said.
Meanwhile, Indian equity benchmarks fell sharply in afternoon deals today, dragged by metals, technology and financials.
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