Firstcall India maintains `Buy` on Procter & Gamble Hygiene & Health Care (P&G) with a price target of Rs 1,966 as against the current market price (CMP) of Rs 1,740 (Nov. 26, 2009).

The Broking house said, Procter & Gamble Hygiene & Health Care reported earnings results for the first quarter ended September 30, 2009. During the quarter, the company reported a net profit of Rs 514.8 million as against profit of Rs 491.7 million for the quarter ended September 30, 2008.

Net sales of the company increased by 20% to Rs 2,257.9 million from Rs 1,888.4 million for the quarter ended September 30, 2008. In the same period, total income of the company was at Rs 2,308.4 million, a rise of 18% over the prior year period.

EPS of the company is stood at Rs 15.86 for the quarter ended September 2009. The company stated that the healthcare segment grew by 7% clocking sales of Rs 973 million in the September quarter while the feminine hygiene segment reported sales of Rs 1,282 million a splendid growth of Rs 32% over the previous period.

P&G is the second largest FMCG Company and also leading a best position in world. P&G products are sold in more than 180 countries primarily through mass merchandisers, grocery stores, membership club stores and drug stores.

The company products, Vicks Vaporub enjoys 25% market share and Whisper 50% market share. Company is planning to continue with its expansion of capacities for manufacture of feminine hygiene products at its Goa plant with a capital outlay of Rs 100 million.

Net sales and PAT of the company are expected to grow at a CAGR of 18% and 18% over 2008 to 2011E respectively.