Colgate-Palmolive (India) Ltd. share price target

Maintain BUY with a revised TP of Rs 1,780/share (Rs 1,650/share earlier) at 39x FY24E EPS.

Investments in innovations and new product launches, coupled with advertising and digital transformation measures would contribute to revenue growth in future. The stock is currently trading at attractive valuations. Hence, we upgrade our rating on the stock to BUY with a rolled forward TP of Rs. 1,690 based on 34x FY24E adj. EPS. Aggressive pricing aids topline In Q3FY22, standalone revenue rose 3.8% YoY to Rs. 1,271cr (-5.4% QoQ) driven by price hikes and brand penetration across product categories. CPIL will continue to...

Volume growth remains muted; margins peak out in India. The company has more than 50% market share in the toothpaste category. The major brands include Colgate Dental Cream, Colgate Total, Colgate Max-Fresh. With the changing consumer preference for naturals products, CPIL is focusing on growing Colgate Vedshakti brand. Recently, it has launched toothpaste for Diabetics,...

Maintain BUY with revised TP of Rs. 1,650 (earlier Rs. 1,765) at 39x FY24E EPS.

Colgate (CLGT) reported another weak quarter of results, with sales/EBITDA/PAT growth in the 24% range. In addition to weak sales growth, material cost pressures are evident; margins came in marginally below estimates despite the sharp 24% cut in ad spends YoY. We maintain a Neutral rating as we do not see any valuation re-rating unless the sales growth traction returns....

back of 1) Increased Input cost inflation and 2) Low volume growth expected margins over FY21-24 post sharp 460bps gains in FY21. Premiumisation trend continues with Colgate Total, Sensitive and Charcoal...