Colgate Research Paper
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BROKING | DEPOSITORY | DISTRIBUTION | FINANCIAL ADVISORY
Equity Research Report On Colgate Palmolive India Limited
For Institutional Clients
Analyst:
ANKIT KHAITAN akhaitan@hemonline.com www.hemonline.com
BROKING | DEPOSITORY | DISTRIBUTION | FINANCIAL ADVISORY
Colgate Palmolive India Limited
Market Cap: 6205.35 Crore Outstanding Shares: 13.59 Crore Price as of 13 April: 456.30 Book Value Per Share: 12.61 th 14 April 2009
th
BUY
Industry: FMCG NSE Code: COLPAL Target Price: 570.00 Upside: 114.00
52 Week Range: 480.00 / 341.00 Face Value Per Share: 1.00
Beta: 0.51 BSE Code: 500830
COLGATE BUSINESS DESCRIPTION
COLGATE PALMOLIVE INDIA LIMITED IS ENGAGED IN ORAL CARE, PERSONAL CARE AND HOUSEHOLD BUSINESS. THE COMPANY HAS PRESENCE IN INDIAN ORAL CARE MARKET FOR MORE THAN 70 YEARS AND THE ORAL CARE SEGMENT ENJOY STRONG BRAND EQUITY FOR PRODUCTS LIKE TOOTHPASTE, TOOTHPOWDERS AND TOOTHBRUSHES UNDER THE BRAND ‘COLGATE’ AND PERSONAL CARE PRODUCTS UNDER THE BRAND ‘PALMOLIVE’.
STOCK PERFORMANCE
COLGATE SENSEX 1m 6.28% 25.25% 12m 14.86% -30.62%
GROWTH (%)
REVENUE PROFIT Last Qtr. Last Yr. 3 Yr. CAGR 1.25% 13.76% 15.05% 22.43% 58.87% 27.99%
Recommendation
With inflation at the lowest level, raw material prices cooling off and excise duty cut has help FMCG companies to maintain its margin. We are very positive on the long term business prospects of the company and its financial performance. At Current Market Price of INR 456.30 and with FY08E and FY09E EPS of INR 20.50 and 23.10, the stock is trading at a PE of 22.2x and 19.7x respectively. We reiterate “BUY” on the stock with target price of INR 570.00 with a medium term investment horizon.
EPS ANALYSIS
Highlights/Recent Updates
Prices rise in some products by 4 per cent Colgate Palmolive India Limited, a leader in the tooth paste segment, has increased the prices of some its product by around 4 per cent, where as other consumer goods makers
BROKING | DEPOSITORY | DISTRIBUTION | FINANCIAL ADVISORY
Equity Research Report On Colgate Palmolive India Limited
For Institutional Clients
Analyst:
ANKIT KHAITAN akhaitan@hemonline.com www.hemonline.com
BROKING | DEPOSITORY | DISTRIBUTION | FINANCIAL ADVISORY
Colgate Palmolive India Limited
Market Cap: 6205.35 Crore Outstanding Shares: 13.59 Crore Price as of 13 April: 456.30 Book Value Per Share: 12.61 th 14 April 2009
th
BUY
Industry: FMCG NSE Code: COLPAL Target Price: 570.00 Upside: 114.00
52 Week Range: 480.00 / 341.00 Face Value Per Share: 1.00
Beta: 0.51 BSE Code: 500830
COLGATE BUSINESS DESCRIPTION
COLGATE PALMOLIVE INDIA LIMITED IS ENGAGED IN ORAL CARE, PERSONAL CARE AND HOUSEHOLD BUSINESS. THE COMPANY HAS PRESENCE IN INDIAN ORAL CARE MARKET FOR MORE THAN 70 YEARS AND THE ORAL CARE SEGMENT ENJOY STRONG BRAND EQUITY FOR PRODUCTS LIKE TOOTHPASTE, TOOTHPOWDERS AND TOOTHBRUSHES UNDER THE BRAND ‘COLGATE’ AND PERSONAL CARE PRODUCTS UNDER THE BRAND ‘PALMOLIVE’.
STOCK PERFORMANCE
COLGATE SENSEX 1m 6.28% 25.25% 12m 14.86% -30.62%
GROWTH (%)
REVENUE PROFIT Last Qtr. Last Yr. 3 Yr. CAGR 1.25% 13.76% 15.05% 22.43% 58.87% 27.99%
Recommendation
With inflation at the lowest level, raw material prices cooling off and excise duty cut has help FMCG companies to maintain its margin. We are very positive on the long term business prospects of the company and its financial performance. At Current Market Price of INR 456.30 and with FY08E and FY09E EPS of INR 20.50 and 23.10, the stock is trading at a PE of 22.2x and 19.7x respectively. We reiterate “BUY” on the stock with target price of INR 570.00 with a medium term investment horizon.
EPS ANALYSIS
Highlights/Recent Updates
Prices rise in some products by 4 per cent Colgate Palmolive India Limited, a leader in the tooth paste segment, has increased the prices of some its product by around 4 per cent, where as other consumer goods makers