Pricing, ad spends to sustain P&G Hygiene's out-performance in near term

Brokerages have upgraded the stock on expectations of double digit growth

Shares of Procter & Gamble Hygiene and Health Care (P&G) have risen 14 per cent so far this month on the back of strong performance in the December quarter. The company reported an 18.5 per cent increase in net sales, compared with a year ago, taking its revenues to Rs 1,018 crore. This is the second consecutive quarter of 18 per cent plus sales growth (see table/chart). 

The sales growth was better than the aggregate sales uptick of about 11 per cent reported by fast-moving consumer goods (FMCG) companies. While sector revenues were led by festive sales, pent-up demand, and rural