Most analysts retain bullish stance on Colgate-Palmolive
Credit Suisse and Haitong Securities have maintained outperform stance while HSBC and Jefferies have maintained buy. Kotak Institutional Equities has maintained its add rating.
By ET Bureau | Updated:
Agencies
Like most brokerages, Jefferies also retained a buy, also raising EPS estimates by 7-9%.
Mumbai: Most brokerages have reiterated their bullish stance on Colgate-Palmolive India after it reported strong domestic growth of 7% in the September quarter and its margins beat analysts’ expectations. The stock ended up 0.48% at ₹1,432.15 on Thursday.
Credit Suisse and Haitong Securities have maintained outperform stance while HSBC and Jefferies have maintained buy. Kotak Institutional Equities has maintained its add rating.
Following the strong margins performance, brokerages have raised target price on the stock by 2-9%.
“Colgate reported better-than-expected second quarter operational show where topline growth at 5% year on year was in line, while Ebitda margin expansion of 540 basis points year on year to quarterly peak of 32% was better than our expectation,” said CLSA, upgrading the stock to outperform.“We expect margin benefit to remain over the medium term and expect this to neutralise over the long term,” it said. Like most brokerages, Jefferies also retained a buy, also raising EPS estimates by 7-9%. But, the brokerage said it is surprised with the disclosure levels as Colgate stopped reporting underlying volume growth after discontinuing market share trend a few quarters back.
