The 29 reports from 9 analysts offering long term price targets
for Colgate-Palmolive (India) Ltd. have an average target of 1748.89. The consensus estimate
represents an upside of 3.63%
from the last price of 1687.60.
Given resilient performance despite pandemic, aggressive volume growth, breakthrough innovations and sustained market share gains, we reiterate BUY rating on the stock with a rolled forward target price of Rs. 1,910 based on 42x FY23E adj. EPS. Topline grows with successful new launches Standalone revenue rose 4.1% QoQ to Rs. 1,275cr (+20.0% YoY) led by strong volumes across product categories. The toothpaste segment showed double digit growth with robust demand, while toothbrush and other discretionary segments witnessed a...
Vinati Organics: Our SELL recommendation on Vinati Organics with a discounted cash flow-based target price of INR 1,320 (WACC 10%, terminal growth 3.5%) is driven by a shift in the revenue mix towards lower-margin Iso Butyl Benzene (IBB) and Butyl Phenol as compared to ATBS, which has a higher margin. In the absence of a new product pipeline, we believe current valuations are high at ~45/35x FY22/23E EPS. 4Q EBITDA/PAT were 14/10% above estimates, owing to a 20% rise in revenue, offset by higher-than-anticipated operating expenses and lower-than-anticipated other income. HG Infra: HG Infra (HG) reported revenue/EBITDA/APAT at INR 10.3/1.7/1.0bn, beating our est. by 22/23/32%. Cost escalation clause in the contracts allowed HG to protect margins (16%, in line with est.), against higher commodity prices. Working capital also improved sharply to 71 days from 104 days in Mar-20. Order inflow came in at INR 24.6bn during the quarter, taking the order book (OB) to INR 70.4bn (~2.8x FY21 revenue). Labour availability has fallen to 70-75%. Management is hopeful of normalcy by the end of Jun-21 and has guided for 25-30% top-line growth, INR 5bn of EBITDA and INR 50-60bn of orders. We increase our FY22/FY23 est. to factor in the robust quarter and maintain BUY with increased SOTP-based TP of INR 515/Sh (EPS upgrade by 22/19% for FY22/23 and HAM 1x P/BV), valuing the EPC business at 10x Mar-23E EPS. Colgate Palmolive: Colgates 4QFY21 revenue and EBITDA was ahead of our as well as streets expectation. Net revenue grew by 20% YoY (HSIE 16%) and maintained...
Colgate reported strong results with 19.8% revenue growth largely led by volumes. Though a low base quarter resulted in strong growth in Q4, we believe continued healthy traction in rural regions also contributed to strong numbers. New products like Colgate toothpaste for diabetics, Vedshakti Spray & Oil are witnessing strong growth, specifically in chemist & e-commerce channels. Toothpaste category remained insulated from pandemic but toothbrush category growth was adversely impacted given discretionary nature of the product. Gross margins expanded 301 bps...
We are increasing EPS estimates by 6.1%/6.4% for FY22/FY23 and upgrading the stock to Accumulate given 1) Comeback of premium segment in Toothpastes 2) Double digit growth across key categories 3) Gain in market share across Ecom/MT 4) Opportunity to gain share in new segments which have sizeable opportunity and 5) lower tax rate than earlier estimates. Rural demand remains strong, urban demand has come back strongly. CLGT...
Colgate-Palmolive (CLGT)'s weak sales growth trend has persisted in recent quarters, including 4QFY21 the two-year average sales growth stands at 56%. It has now been six years since the company reported over 7% sales growth for any year. With (a) the launch of its Non-Oral Care portfolio and (b) investments under the Brush Twice a Day' campaign seemingly on the...
The company has been investing hugely behind brands through media spends & consumer promotions. Unlike other FMCG majors, it has increased its marketing spends in Q3 to support new launches & drive premiumisation. We expect it to spend ~13% of sales towards marketing in FY21 (similar to FY20) despite significant decline in ad-rates in H1FY21. It has launched Mouth Spray & Oil Pulling under Vedshakti brand and is spending aggressively on advertisement to drive penetration led growth. In oral care it introduced toothpaste for diabetics with Ayurveda ingredients. The...
Gross margins expanded 400bps due to benign RM prices, improved sales mix in domestic market and higher growth in Palmolive brand We are changing EPS estimates by -0.4%/2.6% and 5.2% for FY21, FY22 and FY23 due to superior sales mix, comeback of premium segment in Toothpastes and improving traction in Palmolive Handwash and Shower Gel. Domestic volume and value growth has been 5% while decline in exports has...
Colgate Palmolive (India) (CLGT) at its Analyst Meet shared its strategy and opportunities for growth. Key takeaways from the meet were 1) stepped focus on product innovation by tapping into white spaces, platform based innovation models, 2) visible market share gains noticed in Modern Trade
Colgate reported revenue increase of 5.2% YoY / 23.5% QoQ. Domestic net sales for the quarter reported 7.1% YoY growth. EBITDA margin expanded to 31.8% in Q2FY21 (from 26.4% in Q2FY20) primarily benefitting from Change in inventories to the tune of INR 599 Cr. Raw materials stood at 28.5% of sales (vs 28.8% of sales in Q2FY20). Employee cost was also on increase that grew 18.0% YoY. Purchase of stock in trade for the quarter however was higher at 8.1% of revenue (vs 5.1% in Q2FY20). Overall, EBITDA margin expanded sharply by 541 bps YoY / 224 bps QoQ. Consequently, Net Profit grew 12.3% YoY (+38.4% QoQ) due to lower cost of sales as total expenditure declined 2.5% YoY and lower interest expense that declined 24.5% YoY. Net Profit margin for the quarter expanded by 135bps YoY / 229 bps QoQ to 21.3%....
Colgate Palmolive: Colgate reported a healthy 2QFY21 with 5% net revenue growth (HSIE 4.5%) and 7% domestic growth. Volume and price have equally contributed to the revenue growth. Toothpaste recovery was healthy (no sequential divergences) while toothbrush exit recovery was encouraging. Dental cream and Max fresh posted encouraging recovery. Naturals toothpaste continue to outperform (even as an industry) although the growth gap has gone down. Market share was stable during the quarter. GM expanded sharply (339bps YoY) owing to (1) price hike, (2) soft raw material and (3) favourable mix (lower revenue share of toothbrush and exports and higher share of larger pack size). We expect gradual growth recovery with healthy margin expansion in 2HFY21 and increase our estimates for FY21/22 by 6/1%. We value Colgate at 40x P/E on Sep-22E EPS and derive a target price of Rs 1,529. Maintain ADD. Bajaj Finance: While BAFs 2QFY21 operating performance was in line with estimates, earnings were lower on account of higher than expected provisions. The management was prudent in its approach to growth and provisioning. Even as we build higher provisions, our earnings estimates remain largely unchanged as we factor in a slight improvement in cost metrics. Our outlook on the companys long-term prospects remains positive. We continue to believe that current valuations do not fully capture BAFs high RoAE potential (refer to our recent IC). We maintain ADD with a target price of Rs 3,647. UltraTech Cement: During 2QFY21, UTCEM reported solid earnings beat, driven by strong cost controls, healthy realisation and strong retail demand....
We initiate coverage on Colgate Palmolive (India) Ltd. (CLGT) with a BUY recommendation and a Target Price of Rs. 1,565, which implies 15% upside from current levels.
Proven the resilient performance for the quarter and an attractive market share recovery in near-term, we retain BUY rating on the stock with a revised target price of Rs. 1,770 based on 50x FY22E adj. EPS. Exceptional brand image benefiting revenue despite pandemic The standalone business revenue showed a dip of 3.9% YoY to Rs. 1,034cr in Q1FY21 as sales volumes remained stagnant YoY, majorly impacted by a fall in toothbrush and body wash segment. Disrupted supply and distribution also added to the decline in revenue. On the contrary, toothpaste segment showed resilience in maintaining its...
