Colgate-Palmolive (India) Ltd. share price target

Net sales grew only 3% YoY as volumes declined ~3% due to sustained pressure in wholesale. Toothpaste market share declined 120 bps YoY to 54.1% but toothbrush market share grew 160 bps YoY to 47.4%.

Colgate-Palmolive India (Colgate) registered weak numbers in 4QFY17. Revenue was down 2.2% YoY to Rs 10.3bn, below our expectations (6.5%). Volumes contracted 3% vs. our expectations ( 1.5%). EBITDA and APAT grew by 1.2% and -0.5% respectively YoY.

It reported 2.6% YoY revenue growth to | 1171.8 crore (I-direct estimate: | 1242.9 crore). The company witnessed 3% YoY volume decline against our estimate of 1%, due to the muted pick-up in the wholesale channel. It continued to maintain its leadership with 55.1% (55.4% in December 2017) and 47.4% (47.0% in December 2017) market share in toothpaste and toothbrush categories, respectively Raw material cost as a percentage of sales declined 139 bps YoY. However, the company aggressively invested in brand building and...

Wholesale De-stocking & Higher A&P; Spend Impact Growth Colgate-Palmolive has delivered a subdued performance in 4QFY17 with its revenues growing by 2.5% YoY to Rs10.3bn, while net profit remained largely flat at Rs1.4bn. Its overall quarterly volume fell by 3% YoY due to weakness in wholesale trade post demonetisation. Growth in net profit was stagnant due to higher investment in brands through advertising spends. Looking ahead, we expect the Company to deliver 13.2% and 16.8% CAGR in revenue and earnings, respectively through FY17-19E. Valuations at 34.3x FY19E earnings are reasonable, in our view considering that the stock has traded at average one year forward PE multiple of 40x...

Net sales, EBITDA and adj. PAT declined 9%/10%/14%. With mid-single digit price hike, volume declined 12% in Q3FY17. Toothpaste and toothbrush market share stood at 54.5% (down 190bps YoY) and 48.2% (up 290 bps YoY). Higher other operating expenses (+219 bps YoY at 22.6%) and employee costs (+60 bps..

ICICI Securities Ltd | Retail Equity Research Colgate-Palmolive (CPIL) reported a disappointing Q3FY17 performance. Revenue for the quarter declined 8.6% YoY to | 981.6 crore (I-direct estimate: | 947.1 crore) amid demonetisation and increasing competitive intensity. We anticipate ~10-12% decline in volumes considering ~3.0% price decline during the quarter In line with estimates, the company undertook a cut in the advertisement expense in order to mitigate impact of lower sales on...

Colgates net revenue was down by 8.8% YoY to Rs 8.7bn, our expectation was 2% fall. Volume contracted by sharp 12% YoY. EBITDA & APAT grew by -10.3% & -22.6% YoY.

Colgates net revenue was up by 9.5% YoY to Rs 10.6bn, slightly lower than our expectation of 11% growth. Volume growth remained challenging and stood at 4%. EBITDA & APAT grew by 8% & 16%.

ICICI Securities Ltd | Retail Equity Research Colgate-Palmolive (CPIL) reported a healthy performance on both revenue and profit front. However, the margin contracted slightly on a YoY basis. Revenue for the company grew 9.8% YoY to | 1194.9 crore led by 4% volume growth (I-direct estimate: | 1148.9 crore). Domestic volume growth was at 4% in the quarter. The company launched two new products in the toothpaste category, namely, Colgate MaxFresh Power Freeze and Colgate Kids toothpaste...

Favourable Risk Reward Ratio Warrants Rating Upgrade Net revenue of Colgate-Palmolive (India) grew by 9.4% yoy to Rs10.5bn, while net profit increased 15.6% yoy to Rs1.8bn in 2QFY17. The Company's overall volume grew by 4% yoy during the quarter. Notably, prior period tax reversal worth Rs142mn...