Art Of The Deal: US Companies Listed In India See A Jump Before Trump Visit

by Prem Doshi 4 years ago Views 15105

Top 6 Stocks Performance Under Trump
US President, Donald Trump's two-day visit to India was, beyond optics, an opportunity to further American business. The most prominent indications came from American companies listed in India, which saw a jump in stocks before the Trump visit. Prem Doshi of Ace Equities analyses exclusively for GoNews how they have fared since Trump began his Presidency in 2017.

01 – Whirlpool of India Ltd

Whirlpool of India Limited is a manufacturer of home appliances. The Company is primarily engaged in manufacturing and trading of Refrigerators, Washing Machines, Air Conditioners, Microwave Ovens and small appliances and caters to both domestic and international markets, It is the listed Indian Arm of the US-based multinational Whirlpool Corporation.

The company has 17% market share in Refrigerators, 15% market share in Washing Machine and 3% market share in Air Conditioners.

The company for FY19 reported revenues of 5400 crores with a net profit figure of more than 400 crores.

The debt-free company trades at a P/E of 57x and a Market Cap to Sales of 4.75x on the valuations front. 

The key pointer also is with supply chain disruptions emerging from China due to the Coronavirus outbreak, MNC companies like Whirlpool which are not dependent on China can make most of the opportunity.

Since Trump took over as American president, Whirlpool India stock has moved from 880 to 2555 a whooping up move of 190%.

On the Technical Charts front Whirlpool seems to be in a great momentum even though down from recent all time high, It has a strong support just below 2000-1990 levels and expected to soar to new highs soon.

02 – Procter & Gamble Hygiene and Health Care Limited

The American multinational has presence across various categories of products across the world.

Baby care brand Pampers, Feminine hygiene brand Whisper, Fabric care brands Tide and Ariel, Haircare brands Head & Shoulders & Pantene.

Skin Care brands Olay and Old Spice, Oral care brand Oral B, Man’s grooming brand Gillette and Consumer health brand Vicks, All these BIG brands belong to P&G.

For FY2019, P&G H&H reported revenues of 2950 crores and Net profit of 420 crores.

Currently trading at 11200, P&GH was at 6700 when Trump began his term and made a high of 12775 recently, A rally of more than 90%.

03 – Gillette India

The Man’s Grooming Gillette and Oral B brand of P&G is individually listed in India in the form of Gillette India stock.

Gillette Brand has a market share of 70% in blades & razors in India, while Oral B has a market share of 28% in toothbrushes.

On the revenue front Gillette makes almost 80% of it from Men’s Grooming products like Shaving Cream, Blades, Razors etc while 20% of it comes from Oralcare Oral B brand.

Since Trump took guard at the white house, Gillette India stock soared from 4200 to 8140 a rally of more than 93%.

However with disappointing quarterly results and the trend of keeping beard in Indian men has sent the stock of Gillette languishing to yearly lows now at 5800.

04 – Colgate Palmolive

Colgate as it is a synonym to Oral Healthcare, The US Based oral health care multinational specializes in Toothpastes, Toothbrushes, Tooth Powder, Mouthwashes and various other oral healthcare products.

The company reported revenues of about 4500 crores and a net profit of 775 crores for FY 2019.

Colgate Pamolive trades at a market cap of 36000 crores and has a P/E of 45x.

While, Patanjali Dabur Oral B all are out to take a pie in the oral healthcare market, Colgate maintains a leadership position with more than 50% market share in Toothpastes.

The stock has had a relentless Trump Rally, as the stock moved from 861 to 1640 in his Presidency since 2017, a rally of more than 90%.

The company has experienced slower growth in recent quarters due to increased competition and an overall economic slowdown situation domestically in India.

The stock should be watched as it is expected to break all time highs again soon as the economic sentiment improves.

05 – 3M India Ltd

The diversified multinational from 3M India has a lot of industrial and consumer products under its banner.

3M also is a large global manufacturer of Face Masks, n95 masks, surgical and many other healthcare related products.

With annual revenue close to 2800 crores and a net profit of 323 crores, 3M India trades at a market cap of 24000 crores and a P/E of 80x.

The stock rallied from 10700 to hit all time high of 26600 in the Trump presidency, a magnificent rally of almost 150%.

Due to recently reported weak quarterly results, 3M stock has corrected from 25200 to under 21000.

Although the Charts indicate more pain can be on the cards for 3M India below 20,000 levels. This stock can be watched due to increase in demand for n95 masks owing to the Coronavirus outbreak across the globe.

06 – Abbott India

Abbott India Limited, a publicly listed company and a subsidiary of Abbott Laboratories, Offers medicines across therapeutic categories such as women's health, gastroenterology, cardiology, metabolic disorders and primary care.

For FY2019, Abbott reported a revenue of 3680 crores and a Net Profit of 450 crores. It currently trades at a market cap of 34000 crores and a P/E of 57x.

Since Trump took over in 2017, Abbott India stock has rallied from 4700 to 16200, a rally of almost 250%

On the charts, Abbott is at all time high and it remains an investor favourite on declines.

07 – Pfizer Ltd.

Pfizer Ltd headquarterd in Mumbai is the Indian subsidiary of Pfizer Inc, the US based multinational pharmaceutical company.

Pfizer via their robust R&D has medicines in various therapeutic areas, including depression, erectile dysfunction, high cholesterol, HIV infection, hypertension, bacterial infections and systemic fungal infections.

For FY2019, Pfizer Ltd reported revenue of close to 2100 crores and a net profit of 430 crores.

Ever since Trump took over, like all other US-based stocks even Pfizer had a vertical rally.

From levels of 1800 in 2017 stock hit a fresh all-time high of 4600+, a rally of more than 150%.

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