Colgate-Palmolive (India) Ltd. share price target

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

Colgates 4QFY15 total income grew by 10.9% YoY to ~Rs 10.3bn. Impacted by weak macros, volume growth continues to remain muted at ~4% (toothpaste volumes grew by ~5% YoY). Furthermore, market share in toothbrush category was a tad lower (by 20bps) YoY.

Colgate's Q4FY15 results came ahead of our estimates (1) revenue jumped 10.9% YoY to Rs10.3 bn Vs est of Rs10.3 bn (2) Operating profit increased 26.4% YoY to Rs2.5 bn Vs est of Rs2.2 bn (3) Operating margin expanded by 300 bps YoY to 24.1% vs est of 21.1% and (4) APAT grew 23.7% YoY to Rs1.6 bn Vs est of Rs1.3 bn.