Colgate-Palmolive (India) Ltd. share price target

Volume led growth quarter; Naturals' portfolio outperforms CPIL has been able to maintain its toothpaste volume market share at 52% and increase its toothbrush market share by 280 bps to 48% on a YoY basis. CPIL posted ~6% topline growth largely driven by volume growth of 5%. Colgate's volume growth has improved in past few quarters (7% each in Q2Q3FY19) primarily driven by new launches in the naturals' portfolio. CPIL has aggressively increased its promotional spend to drive growth in its 'Naturals' and overall toothpaste portfolios. In naturals, CPIL has increased its volume market share by 120 bps YoY to 8.1%. We expect naturals' portfolio...

ICICI Securities Ltd | Retail Equity Research On an unfavourable base of 12% volume growth, CPIL was able to post 7% volume growth in Q3FY19 EBITDA margins improved 123 bps to 28.6% on account of 79 bps decline in employee costs to sales, 22 bps decline in advertisement spend to sales & 30 bps fall in miscellaneous expenses to sales...

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%).

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.

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...

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...