The scrip towards the end of November witnessed a rally when price moved from Rs 1244 to touch a high of Rs 1630. However, fears of slow growth in the FMCG companies saw the stock shed some gains. But the stock still enjoys a high PE multiple of 111 times, mainly due to its near monopoly position and expectation of higher growth. Marketmen the stock still has potential to rise further.

Analysts feel with the living standards of Indians improving, the company should easily be able to find market for premium products which were not launched in India till now. A 51 per cent subsidiary of US shaving products major Gillette, ISPL has recently launched its `MACH3' shaving system in India mainly to cater to the premium segment.

The retail price of MACH3 razor set in India would be Rs 295. This will help the company in consolidating its presence in the premium range of mens' shaving products market and pumping its profit margins. The company will be importing MACH3 from Gilletts's Boston and Berlin plants as the production requires advanced technological facility.

At the same time, ISPL plans to invest Rs 53 crore to upgrade its manufacturing facility. While almost half of this proposed Rs 53 crore investment has already been obtained via an external commercial borrowing (ECB), the remaining money would be obtained from its internal accruals. To upgrade its manufacturing capability, it is doubling the capacity of double-edged blades to 700 million blades from 340 million blades and increasing cartridge disposable blades by 33 per cent to 140 million numbers.

On the financial front, its performance in the third quarter has been impressive with a 71 per cent increase in net profit to Rs 8.28 crore and sales growing by 35.14 per cent to Rs 62.79 crore. Domestic sales rose by 49 per cent. Disposable razors, sold under the Presto brand, saw a volume growth of 56 per cent, while Sensor has shown a growth of 69 per cent.