BSE Code: | NSE Code: | ISIN: | Sector:

NSE
1061.60
Change Change %
14.70 1.40%

Updated:23 Oct, 2017, 15:59 PM IST

BSE
1061.75
Change Change %
14.70 1.40%

Updated:23 Oct, 2017, 15:52 PM IST

Research Report Detail

Brokerage
Analyst
Report Date Call Price@Call Target Price
Stop Loss
Current Status Time Horizon
Nomura
N/A
04-08-2017 Buy 1073.90 1260.00
N/A
Open Long (1Y)
04-08-2018

Nomura maintains buy on Colgate Palmolive India

Colgate's 1QFY18 results were ahead of our and street expectations. We had expected the company to be hit hard by GST-related de-stocking, given the steep tax rate changes and resultant price cuts. However, against our expectation of a high-single-digit volume decline, the company's reported volumes were down only 5% y-y. Margins, both at gross and EBITDA level, also surprised positively.

We expect Colgate's growth trajectory to pick up sharply given the: a) low base effect, b) recent 8-9% price cuts across the portfolio, and c) strong innovation pipeline. Consequently we lift estimates by 3.9% and 4% for FY18F and FY19F to account for the strong growth and the EBITDA margin beat in Q1FY18.

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