Colgate-Palmolive (India) Ltd. share price target

Despite building healthy recovery, we arrive at a NEUTRAL rating. We value based on P/E of 35x on Dec-20 EPS with TP of Rs 1,254. Colgate reported an in-line quarter with revenue growth of 6.5% (exp. 8.5%) driven by volume growth of 7% (exp. 6.5%). The co. has increased its trade and consumer promotional intensity resulting in softer revenue growth and gross margin pressure. EBITDA/APAT grew by 11/13% (exp. 10/12%).

CLGT sustained positive volume growth for 5th consecutive quarter and sustained market share (52.5% for April Dec and April Sept2018) aided by higher consumer and trade promotions. Colgate CDC, Max fresh and Swarna...

Net sales came in line growing 6.4% YoY to INR11b (est. EBITDA was up 11.2% YoY to INR3.1b (est. INR2.9b), while Adj. PAT grew 12.6% YoY to INR1.9b (est.

Colgate-Palmolive India Ltd (CPIL) reported decent numbers for Q2FY19, in line with our expectation. Its revenue grew by 7.7% yoy driven by volume growth. Its EBITDA and PAT grew by 9.6% and 10.6% yoy respectively due to decrease in employee expense and cost efficiency.

Colgate Palmolive (India) Ltd Q2FY19 results Comment Revenue grew by 12.3% to Rs. 1160.63 Cr in Q2FY19 when compared to the previous quarter. Also, it increased by 7.67% when compared with Q2FY18.

ICICI Securities Ltd | Retail Equity Research CPIL posted 7.7% YoY sales growth led by 7% volume growth as it had taken a 10% price cut on account of GST benefit to consumers CPIL maintained its leadership position with volume market share in toothpaste & toothbrush categories at 52.5% and 44.2%, respectively albeit losing market share in toothpaste segment due to aggressive competition especially in ayurvedic and naturals' toothpaste EBITDA margins improved 48 bps to 28.2% mostly on account of...

We value based on P/E of 35x on Sep-20 EPS to arrive at a TP of Rs 1,163. Colgate registered 7/8% volume/value growth as compared to exp. of 5/8%. There is a slight recovery in revenue growth considering 4% revenue CAGR during the last 8 quarters. Colgate enjoyed the benefits of pan-India launch of Swarna Vedshakti (naturals). Soft input inflation and decline in employee expense led to EBITDA/APAT growth of by 10/11% (exp. 12/15%)

The Q2FY19 results came in line with our expectation. On a favorable base of 1% volume decline the company was able to post 7% growth. After consecutive 7 quarters of lackluster volume performance, the company was able to show some improvement in volume growth. Our analysis suggests that the company has gained 220bps volume MS in toothpaste category sequentially and 20bps on YoY. However, Colgate lost 250bps market share in toothbrush category sequentially, was discouraging. We attribute the improvement in volume performance to recent launch of...

29 October 2018 low base (1% decline in 2QFY18). Net sales grew 7.7% YoY to INR11.7b (our Toothbrush market share declined 40bp QoQ (-130bp YoY) to 44.2% over the same period. PAT grew by 7.1% (with ~5.5% toothpaste volume growth)/16.8%/15.7%. EBITDA margin expanded 230bp YoY to 27.7%. For 2HFY19, we expect sales/EBITDA to increase 5.3%/1% YoY, and adj.

We value Colgate based on P/E of 35x on Jun-20 EPS to arrive at a TP of Rs 1,185 (Rs 1,219). Colgate registered 6.6/4% revenue/volume growth (exp. 11/6%). Despite favorable base (-5% in 1QFY18), good traction for Swarna Vedshakti and improving consumption dynamics, volume growth remained tepid.