Colgate-Palmolive (India) Ltd. share price target

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...

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...

Maintain BUY with revised TP of Rs. 1,835 and continue to value it at 40x its FY23E EPS.

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...

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...

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...

We maintain BUY and TP of Rs. 1,745 as we value the stock at 40x its FY23E EPS.

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

CLGT Analyst Meet highlighted increasing management focus on 1) Change in Estimates | Target | Reco Innovations under Vedshakti brand creating new segments (mouth protect spray and oil pulling) 2) Launch of Diabetic Toothpaste 3) new toothbrush...