Equirus SecuritiesTarget: ₹12,168CMP: ₹9,009.90Procter & Gamble Hygiene and Health Care’s (PGHH’s) FY26 operating performance remained muted, with revenue largely flat year on year, amid slower category expansion, elevated competitive intensity and softer consumption trends.Cost discipline and productivity initiatives lifted EBITDA 18 per cent, expanding EBITDA margins to about 27.3 per cent. Margin gains were supported by ₹86 crore of productivity savings and a 14 per cent year-on-year reduction in ad spends.Feminine care is expected to deliver mid-to-high single-digit growth over the medium term. Within Healthcare, category growth remains dependent on seasonal factors such as monsoon intensity and respiratory illness incidence. Nevertheless, PGHH continues to strengthen the Vicks franchise through innovation-led expansion.Amid muted category growth and rising competitive intensity, the stock has undergone a meaningful de-rating and now trades at 32x/30x FY27E/FY28E EPS.The company is accelerating investments in AI-enabled demand forecasting, supply-chain automation and retail execution to enhance operating efficiency.While near-term growth visibility remains moderate, PGHH’s dominant market position, significant penetration opportunity, innovation-led premiumisation and strong cash generation support our positive long-term stance.We forecast an 8 per cent FY26-29E revenue CAGR, with EBITDA margins at 25-27 per cent. Maintain LONG with a September 2027 TP of ₹12,168.Published on June 17, 2026