IFSCCodeof.in

Procter & Gamble Hygiene and Healthcare

Motilal Oswal has set a price target of almost 21% over the current market price for the stock of the company and has placed a buy call.

According to Motilal Oswal, Procter & Gamble Hygiene and Healthcare delivered strong sales growth in the first half of the decade, with a 20.4% CAGR over FY10-15.

“The company saw a lull period over the next three years due to overhauls such as demonetization and the introduction of GST. However, since FY19, growth seems to have returned strongly (barring a temporary blip in FY20 due to COVID-related disruptions). With 19% sales growth delivered in FY21, PGHH appears to have returned to the growth levels seen in the earlier half of the decade,” the brokerage has said.

Procter & Gamble Hygiene and Healthcare: Rapid growth

The company should see rapid growth over the long term on the back of certain encouraging developments: (a) the increasing pace of distribution expansion, (b) the continuingly strong pace of category development efforts in schools to boost awareness and growth, (c) rising ad spends after a lull in preceding years, (d) a healthy pipeline of new products, (e) accelerated consumer entries into the category through launches at low price points, and (f) the willingness to take price cuts, whenever required, to boost growth.

“We maintain a Buy rating, with a target price of Rs 17,450 (50x Dec’23 EPS),” the brokerage has said.

Buy Britannia Industries, says Motilal Oswal

Brokerage firm, Motilal Oswal also has a buy call on the stock of Britannia Industries, though it has not set a target price on the same.

According to a press release issued by Britannia, the company is witnessing unprecedented levels of inflation in the market prices of palm oil (+54%), industrial fuel (+35%), and packaging materials (+30%), leading to an overall inflation of 14% in 2QFY22.

According to Motilal Oswal, the management was able to partially offset this impact through strategic forward covers and accelerated cost efficiency programs. It has also initiated necessary price hikes across the portfolio.

Consolidated sales rose 5.5% YoY to Rs 36.1 billion (est. INR34.9b) in 2QFY22. Consolidated EBITDA/PBT/adjusted PAT declined by 17.3%/22.1%/23% YoY to INR5.6b/INR5.2b/INR3.8b (est. INR5.8b/INR5.7b/INR4.3b).

“Base business volume growth likely to be between 6% and 7% in 2QFY22 (est. 4%),” Motilal Oswal has said in a press release. The stock of Britannia last closed at Rs 3,611 on the National Stock Exchange.

Disclaimer

The above stocks are picked from the brokerage report of Motilal Oswal. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.

The Ministry of Defence under the Controller of Defence Accounts, Guwahati has released a list of Income Tax Savings Documents that must be submitted for the fiscal year 2021-2022. “For the purpose of assessment and regularization of Income Tax for the Financial Year 2021-22 (Assessment Year 2022-23) all the officers and staff are requested to submit the following documents” the Defence Ministry has said in an Official Memorandum (O.M) on dated 2nd November 2021.

As per Annexure I and IL, proof of savings/documents such as insurance premium receipts, NSC, Infrastructure Bond, PPF Bank Statement, Housing Loan Certificate from bank, rent receipt, copy of House Owner’s Pan Card, etc. should be submitted.

According to the OM, any Officers and Staff claiming exemption of Income Tax under IT Act 1961 under section 197 who have not forwarded the Exemption Certificate for FY 2021-22 from Income Tax Department are advised to do so at the earliest; failing which Total Tax Payable will be deducted at source and tax refund if any should be claimed only from IT Department. The Defence Ministry has also clarified that “In this connection, it is also stated that exemption allowed will be limited to the amount of salary and period of exemption mentioned in the Income Tax Exemption Certificate as received from the Income Tax Department. Any amount exceeding the amount mentioned in the Certificate and any salary drawn prior or after the period mentioned will be liable for a tax deduction.”

The Defence Ministry has said that “Those employees who had produced “Self Declaration” earlier, should also submit Proof of savings/documents along with Annexure I and Annexure-II failing which the “Self Declaration” submitted earlier shall be considered null and void and Tax Deduction at source shall be done accordingly.”

Hence, taxpayers are recommended that the above documents (if relevant) duly completed in all regards should be submitted on or before December 15, 2021, in order for the ODO to authorize the income tax deduction at source for the present fiscal year. The Defence Ministry has further stated in its OM that “In absence of receipt of the aforementioned documents from the official, the Income Tax will be deducted based on the available information at this end and any refund, if admissible, may be claimed only from the Income Tax department.”