Accumulate Colgate-Palmolive (India), target price Rs 1800: Geojit

Geojit has accumulate call on Colgate-Palmolive (India) with a target price of Rs 1800. The current market price of Colgate-Palmolive (India) is Rs 1613.1. Time period given by analyst is one year when Colgate-Palmolive (India) Ltd. price can reach defined target.

Colgate-Palmolive (India) Ltd., incorporated in the year 1937, is a Large Cap company (having a market cap of Rs 43852.24 Crore) operating in FMCG sector.

Colgate-Palmolive (India) Ltd. key Products/Revenue Segments include Personal Care, Service Income and Scrap for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-03-2022, the company reported a Standalone Total Income of Rs 1310.13 Crore, up 1.89 % from last quarter Total Income of Rs 1285.80 Crore and up 1.58 % from last year same quarter Total Income of Rs 1289.81 Crore. Company reported net profit after tax of Rs 323.57 Crore in latest quarter.

Investment Rationale
Brand power, innovation led investments, digital capabilities, launch of new products and variants will drive revenue growth in future. Judicious pricing actions, focus on cost optimization will offset input cost inflation. The stock is currently trading at attractive valuations. Hence, the brokerage recommends Accumulate rating on the stock with a revised target price of Rs. 1,800 based on 38x FY24E adj. EPS.

Promoter/FII Holdings
Promoters held 51.0 per cent stake in the company as of 31-Mar-2022, while FIIs owned 18.64 per cent, DIIs 8.06 per cent.