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Gillette India is losing its edge. Why the stock may finally get rerated, shed its rich valuations

P&G subsidiary Gillette has dominated the market for razors and blades in India, like it has globally. This had ensured premium valuations for the stock on Dalal Street for years, but that may change soon. The demand for razors is shrinking in developed markets, as facial hair becomes fashionable. A similar story may play out in India.
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29 May 2020 10 Mins Read 2 comments
A shaver on display at Gillette's Berlin factory Getty Images
A shaver on display at Gillette's Berlin factory
What happens when a business facing fundamental headwinds continues to trade at exorbitant valuations? The stock price should see a deep correction at some point, but Gillette India remained an outlier for years. Jatin Khemani, seasoned investor and founder and CEO of Stalwart Advisors, had pointed to the changing fortunes of Gillette India back in 2017. But the stock
grooming and make a few sensible acquisitions using surplus liquidity,” he adds. Maybe it’s time for Gillette to again have a heart-to-heart conversation with its customers in India, like it did a decade ago, and understand what they need. Time may not be on its side despite its global and financial muscle. ( Graphics by Sadhana Saxena)
What happens when a business facing fundamental headwinds continues to trade at exorbitant valuations? The stock price should see a deep correction at some point, but Gillette India remained an outlier for years. Jatin Khemani, seasoned investor and founder and CEO of Stalwart Advisors, had pointed to the changing fortunes of Gillette India back in 2017. But the stock grooming and make a few sensible acquisitions using surplus liquidity,” he adds. Maybe it’s time for Gillette to again have a heart-to-heart conversation with its customers in India, like it did a decade ago, and understand what they need. Time may not be on its side despite its global and financial muscle. ( Graphics by Sadhana Saxena)

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