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nazgul
Senior Member
Joined: 08/Jul/2009
Location: India
Online Status: Offline
Posts: 407
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   Topic: Gillette - The best a man can get?
Posted: 04/May/2012 at 8:48pm |
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Has anyone been tracking Gillette?
This one also seems to be a Page type company. Recession proof, debt free, consumer play and heavy moat in business.
Views invited.
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I don't do funds, i do fundas.
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Multiplier
Groupie
Joined: 16/Jul/2010
Online Status: Offline
Posts: 82
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Posted: 04/May/2012 at 9:50pm |
Originally posted by nazgul
Has anyone been tracking Gillette?This one also seems to be a Page type company. Recession proof, debt free, consumer play and heavy moat in business.Views invited.
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Great company ....has a MCap of Rs 8000 cr....expected sales of Rs 1300 cr likely this yr....6x....
Page has MCap of 3300 cr and expected sales of Rs 750 cr....4.5x....
PE ratios not comparable since Gillette is spending heavily on advertising exp.....
Worth spending more time on it .....
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Monkey
Senior Member
Joined: 21/Aug/2009
Online Status: Offline
Posts: 770
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Posted: 04/May/2012 at 10:22pm |
I did discuss my experience with Gillette on another thread sometime back. Link is below. I learned from that episode that no matter how great the business is, integrity of promoter is the first necessary attribute to look for. Gillette failed me in that and I would not touch it again.
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nazgul
Senior Member
Joined: 08/Jul/2009
Location: India
Online Status: Offline
Posts: 407
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Posted: 04/May/2012 at 10:50pm |
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i didnt know of that. Thats sounds scary. But is this one off incident or something of a regular thought process? Is the management dependable today? has the management changed?
Monkey can you share some more thought on this since you seem to have alanysed and experienced the management here.
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I don't do funds, i do fundas.
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Monkey
Senior Member
Joined: 21/Aug/2009
Online Status: Offline
Posts: 770
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Posted: 04/May/2012 at 1:53am |
Well..........That could very well be one off kind of incidence. But, how can I be sure that it was one off incidence and will not happen again especially after me putting good deal of money at premium valuation based on quality of business? Local management in India is irrelevant in this case as such decisions are usually taken in US and pushed down the throats of local management. Many MNCs in India indulge in practices not very friendly for minority sharholders such as operating 100% owned subsidiary and setting terms of mergers and acquisitions hugely favoring majority shareholders. So, one needs to discount such possibilities while investing in MNCs. For me, the rule is this. If you cheat me once, fine, it was my mistake to trust you but if you cheat me twice, I am the fool and I deserve the treatment I receive.
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tejas.k
Senior Member
Joined: 07/Dec/2009
Location: India
Online Status: Offline
Posts: 563
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Posted: 04/May/2012 at 10:29am |
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useful info monkey. even otherwise i consider it an avoid now. no doubt its a great business with no competition. but look at the numbers. TTM PE of 134. Revenue growth not impressive. eps growth erratic.
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rapidriser
Senior Member
Joined: 18/Nov/2007
Location: India
Online Status: Offline
Posts: 966
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Posted: 04/May/2012 at 11:00am |
Originally posted by tejas.k
useful info monkey. even otherwise i consider it an avoid now. no doubt its a great business with no competition. but look at the numbers. TTM PE of 134. Revenue growth not impressive. eps growth erratic.
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Many MNCs are quoting at high P/Es in the expectations of de-listing and buyback. With the promoters holding at 88.76%, this one is being touted as a prime candidate by many brokerages. People are going to lose a lot of money if the de-listing does not happen.
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When all else is lost, the future still remains. - Christian Nestell Bovée
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baba
Senior Member
Joined: 16/Jan/2011
Location: United Arab Emirates
Online Status: Offline
Posts: 305
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Posted: 29/Jun/2012 at 11:41pm |
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One og f my favooo stocks .. Holdingg from 1600 ..
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A monthly investment of Rs 500 (Rs 17 per day) for 30 years @21%CAGR can create a wealth of Rs 1.5 crores. !!!
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