Reduce Colgate-Palmolive (India), target price Rs 1515: Sharekhan by BNP Paribas

Sharekhan by BNP Paribas has reduce call on Colgate-Palmolive (India) with a target price of Rs 1515. The current market price of Colgate-Palmolive (India) is Rs 1661.

Colgate-Palmolive (India), incorporated in the year 1937, is a Large Cap company (having a market cap of Rs 45228.49 Crore) operating in FMCG sector.

Colgate-Palmolive (India) key Products/Revenue Segments include Personal Care, Service Income and Scrap for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-03-2023, the company has reported a Standalone Total Income of Rs 1370.98 Crore, up 5.32 % from last quarter Total Income of Rs 1301.68 Crore and up 4.64 % from last year same quarter Total Income of Rs 1310.13 Crore. Company has reported net profit after tax of Rs 316.22 Crore in latest quarter.

The company’s top management includes Mr.Mukul Deoras, Mr.M S Jacob, Mr.Surender Sharma, Mr.Sekhar Natarajan, Ms.Gopika Pant, Mr.Vikram Singh Mehta, Ms.Sukanya Kripalu, Dr.(Ms.)Indu Shahani, Ms.Shyamala Gopinath. Company has SRBC & Co LLP as its auditors. As on 31-03-2023, the company has a total of 27 Crore shares outstanding.

Investment Rationale
The brokerage expects Colgate’s revenue and PAT to post a CAGR of 6.8% and 7%, respectively, over FY2023-FY2025E, which is much lower compared to other FMCG companies. The stock is currently trading at 39.5x and 36.5x its FY2024E and FY2025E earnings, respectively.

Promoter/FII Holdings
Promoters held 51 per cent stake in the company as of 31-Mar-2023, while FIIs owned 21.5 per cent, DIIs 6.89 per cent.