KR Choksey has given Buy recommendation for Colgate Palmolive (India) with a target price of Rs. 1802 in its research report issued on Jan 29, 2022

KR Choksey’s research report on Colgate Palmolive (India)

In Q3FY22, Colgate reported revenue growth of +3.9% YoY / -5.3% QoQ to INR 12,801 Mn. For 9MFY22, revenue stood at INR 37,985 Mn (+6.8% YoY). EBITDA margin contracted by 36 bps YoY to 29.7% in Q3FY22 (from 30.1% last year) primarily due to rise in input costs. For Q3FY22, EBITDA stood at INR 3,806 Mn (+2.7% YoY/-5% QoQ). Net Profit for Q3FY22 stood at INR 2,523 Mn (+1.6% YoY/-6.3% QoQ). Net Profit margin for the quarter contracted by 45 bps YoY to 19.7%. For 9MFY22, PAT stood at INR 7,548 Mn (+4.7% YoY), with NPM at 19.9% (-39bps YoY). The overall advertisement spend declined by 23.9% YoY and 18.6% QoQ.


Since our last recommendation, the stock price has further corrected to INR 1,400. We apply P/E multiple of 39x on FY24E EPS of INR 46.2 and arrive at a target price of INR 1,802 per share (earlier INR 1,850 per share), an upside potential of 28.7% from CMP. We continue to assign “BUY” rating on the shares of Colgate Palmolive.

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At 16:00 hrs Colgate Palmolive (India) was quoting at Rs 1,461.10, up Rs 30.90, or 2.16 percent.

It has touched an intraday high of Rs 1,463.90 and an intraday low of Rs 1,431.00.

It was trading with volumes of 7,285 shares, compared to its thirty day average of 17,420 shares, a decrease of -58.18 percent.

In the previous trading session, the share closed up 0.40 percent or Rs 5.65 at Rs 1,430.20.

The share touched its 52-week high Rs 1,823.00 and 52-week low Rs 1,375.55 on 26 July, 2021 and 25 January, 2022, respectively.

Currently, it is trading 19.85 percent below its 52-week high and 6.22 percent above its 52-week low.

Market capitalisation stands at Rs 39,739.82 crore.

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