Colgate-Palmolive (India) Ltd. share price target

Colgate Palmolive (India) has reported mixed set of numbers for 4QFY16. While its revenues came in at Rs10.9bn (5% ahead of our estimate of Rs10.4bn), EBITDA and net profit came in 14% & 18% below our estimate at Rs2.3bn & Rs1.5bn respectively, which can be attributed to higher A&P; spends. The Company's net sales (excluding the impact of phasing-out of Excise Duties) grew by 13%, while net profit increased 14% in 4QFY16. We expect the Company to post revenue and earnings CAGR of 12.7% & 12%, respectively through FY16-18E and revise our recommendation on the stock from HOLD to ACCUMULATE with a Target Price of Rs851....

While Colgate continues to be the market leader in both toothbrushes and toothpastes by a considerable margin, its dominance has once again been challenged this time by Patanjali. Past contenders have included Anchor, Pepsodent, and Oral B. Patanjali's...

While Colgate continues to be the market leader in both toothbrushes and toothpastes by a considerable margin, its dominance has once again been challenged this time by Patanjali. Past contenders have included Anchor, Pepsodent, and Oral B. Patanjali's...

Colgates 3QFY16 revenues grew by a mere 1.9% YoY to Rs 10.1bn (vs. estimate of Rs 10.6bn). Impacted by the toothpaste category slowdown and rising competition, Colgate?s volume growth cracked to ~1%. Revenue growth was 7% excluding the impact of excise benefit withdrawal in Himachal Pradesh.

Other expenses have seen blips quarter on quarter due to various reasons, the managementsees9monthstobemorereflectiveoffullyearFY16 WhileA&P;spendshavedeclinedforpasttwoquarters,managementcommentedthat...

Colgate reported net sales growth of just 1.8% to Rs10.1bn, which was lower than our estimates of Rs10.4bn. Volumes have grown by just 1% for the quarter. EBITDA came in at Rs2.2bn in line with our estimate, while reported net profit increased 21.8% to Rs1.6bn, higher than our estimate of Rs1.5bn. This out performance was attributable to tax reversal of Rs186mn in the quarter. We expect revenue and earnings CAGR of 9%...

As exciseduty benefits have ceased, sales growth will be impacted by 580/600bps in Q3/Q4FY16andgrossmarginswillbeimpactedby150bps Employee spends in Q2FY15 (base quarter) had some exceptional items (expat debit...

Colgate's Q1FY16 numbers were slightly below our and consensus estimates because of tepid volume growth of 2.3% yoy. While volume slowdown has been significant, Colgate's sustained brand investments led to 90/10bps market share gains in...

Colgate's Q1FY16 results came below our estimates (1) revenue jumped 5.6% YoY to Rs10.1 bn Vs est of Rs10.6 bn (2) Operating profit increased 4.2% YoY to Rs2.0 bn Vs est of Rs2.4 bn (3) Operating margin contracted by 30 bps YoY to 20.0% vs est of 22.6% and (4) APAT grew 8.2% YoY to Rs1.5 bn Vs est of Rs1.6 bn. We have revised our FY16E and FY17E EPS estimates downwards to factor in Q1FY16 performance and increase in excise duty. We have revised price target to Rs2004/Share from Rs2011/Share. As CMP factors in most positives we rate Colgate as SELL