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Gillette India Shares surge 14% after Q3 Results

Gillette India stock surges: Is it just the Q3 results or the โ‚น65 dividend payout?

Gillette India Shares surge 14% after Q3 Results

Gillette India shares saw a sharp rally on February 18, 2025, surging over 14% intraday after the company announced its Q3 FY25 results. Investors cheered the strong financials, and the stock price soared to an intraday high of โ‚น8,549.80 on the BSE, before settling slightly lower.

This rally comes ahead of the โ‚น65 per share dividend record date on February 19, 2025, which has also contributed to investor enthusiasm.

Letโ€™s break down whatโ€™s fueling this surge.

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Gillette India Q3 FY25 financial performance

Gillette India delivered a solid performance in Q3 FY25, reporting:

MetricQ3 FY25Q3 FY24YoY Growth
Net Profitโ‚น125.97 croreโ‚น103.95 crore0.21
Revenue from Operationsโ‚น685.55 croreโ‚น639.46 crore0.073
Grooming Segment Revenueโ‚น570.64 croreโ‚น514.21 crore0.11
Grooming Segment EBITโ‚น123.49 croreโ‚น129.04 crore-4.30%
Oral Care Revenueโ‚น114.91 croreโ‚น125.25 crore-8.25%
Oral Care EBITโ‚น38.74 croreโ‚น6.49 crore4.97

The net profit surged by 21% YoY, reaching โ‚น125.97 crore, while revenue grew by 7.3% to โ‚น685.55 crore.

The grooming segmentโ€”which contributes the bulk of Gillette Indiaโ€™s revenueโ€”saw an 11% YoY growth, offsetting the decline in the oral care segment, which fell 8.25% YoY.

Interestingly, the oral care segmentโ€™s EBIT jumped from โ‚น6.49 crore to โ‚น38.74 crore, reflecting significant improvements in operational efficiency.

Despite a decline in grooming EBIT, overall growth has kept investors optimistic about Gillette Indiaโ€™s future.

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Dividend payout: A key driver behind the rally?

Gillette India had earlier declared an interim dividend of โ‚น65 per share for FY25. The record date for this dividend is February 19, 2025, meaning only shareholders holding the stock at the close of business on this date will be eligible for the payout.

Also read: Zen Technologies Share Price Drops After Q3 Results

What does this mean for investors?

  1. Stock trades ex-dividend on February 18 โ€“ meaning those buying the stock on or after this date wonโ€™t be eligible for the dividend.
  2. High dividend attracts investors โ€“ A high payout of โ‚น65 per share signals strong cash flow and financial health.
  3. Boost in investor sentiment โ€“ The dividend declaration adds confidence, leading to buying pressure ahead of the record date.

This could partly explain why the stock witnessed a sharp surge right before going ex-dividend on February 18.

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Stock market reaction and future outlook

At 12:55 PM on February 18, 2025, Gillette India shares were trading 13.86% higher at โ‚น8,488.10 per share on the BSE.

The stock has been underperforming year-to-date (YTD), down over 11% before this recent rally. However, strong earnings and a hefty dividend have turned the sentiment positive, leading to heavy trading volumes.

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Whatโ€™s next for Gillette India stock?

  • Short-term outlook: With the dividend record date approaching, investor interest might remain high. However, after the ex-dividend date, some profit booking could be expected.
  • Long-term perspective: The companyโ€™s growth in the grooming segment, improved efficiency in oral care, and consistent dividend payouts make it an attractive stock for long-term investors.
  • Key risk to watch: The decline in EBIT for the grooming segment may signal margin pressure, which could impact future profitability.

With its strong brand positioning, consistent dividend payouts, and steady revenue growth, Gillette India remains on the radar of long-term investors.

Conclusion

Gillette Indiaโ€™s Q3 FY25 results have driven a strong 14%+ rally in the stock, supported by a โ‚น65 per share dividend announcement.

The company reported:
โœ… 21% jump in net profit
โœ… 7.3% growth in revenue
โœ… 11% growth in grooming segment revenue

With the dividend record date set for February 19, 2025, investors have shown confidence in the stock, fueling a sharp uptick.

However, declining EBIT in the grooming segment and overall stock performance YTD (-11%) remain areas to watch.

For investors, Gillette India presents a mix of short-term momentum and long-term growth potential, making it a stock worth tracking closely in the coming months.

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Ayesha Khan

Ayesha Khan is an experienced financial journalist with a passion for breaking down complex economic and market news for a broad audience. With over a decade of reporting on global financial trends, she has covered everything from stock market movements to macroeconomic shifts and regulatory changes. Ayesha specializes in providing clear, concise analysis of financial events, helping readers stay informed and make well-rounded decisions. Through her writing, she brings the latest industry insights to the forefront, bridging the gap between financial experts and the general public.

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