SBICAP Securities maintains hold on Colgate-Palmolive India, target price Rs 1,400
Trading at 42 times FY21 estimated P/E, valuation looks full and offers limited scope for upside.
By ETMarkets.com | Updated:
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SBICAP Securities has maintained hold rating on Colgate-Palmolive India in the long term with a target price of Rs 1,400. Shares of the company ended flat at Rs 1,460.70 on Wednesday while the BSE Sensex closed 52.28 points up at 41,306.02.
Company Financials
For the quarter ended 30-09-2019, the company has reported standalone sales of Rs 1213.21 crore, up 12.75 % from last quarter Sales of Rs 1075.99 crore and up 4.53 % from last year same quarter Sales of Rs 1160.63 crore. The company has reported net profit after tax of Rs 244.11 crore in the latest quarter.
The company’s top management includes Dr.(Ms.)Indu Shahani, Mr.Issam Bachaalani, Mr.M Chandrasekar, Mr.M S Jacob, Mr.Mukul Deoras, Mr.P K Ghosh, Mr.R A Shah, Mr.Vikram Mehta, Ms.Shyamala Gopinath, Ms.Sukanya Kripalu. Company has SRBC & Co LLP as its auditors. As on 30-09-2019, the company has a total of 271,985,634 shares outstanding.
Investment Rationale
The brokerage met the company's management recently and the company noted three focus areas: gaining a fair share in family naturals segment, driving per capita spends in the oral care category, and business diversification. Trading at 42 times FY21 estimated P/E, valuation looks full and offers limited scope for upside, with sales, Ebitda and PBT CAGR at 9%, 10% and 10%, respectively, in FY19-FY22, it said.
Company Financials
For the quarter ended 30-09-2019, the company has reported standalone sales of Rs 1213.21 crore, up 12.75 % from last quarter Sales of Rs 1075.99 crore and up 4.53 % from last year same quarter Sales of Rs 1160.63 crore. The company has reported net profit after tax of Rs 244.11 crore in the latest quarter.
The company’s top management includes Dr.(Ms.)Indu Shahani, Mr.Issam Bachaalani, Mr.M Chandrasekar, Mr.M S Jacob, Mr.Mukul Deoras, Mr.P K Ghosh, Mr.R A Shah, Mr.Vikram Mehta, Ms.Shyamala Gopinath, Ms.Sukanya Kripalu. Company has SRBC & Co LLP as its auditors. As on 30-09-2019, the company has a total of 271,985,634 shares outstanding.
Investment Rationale
The brokerage met the company's management recently and the company noted three focus areas: gaining a fair share in family naturals segment, driving per capita spends in the oral care category, and business diversification. Trading at 42 times FY21 estimated P/E, valuation looks full and offers limited scope for upside, with sales, Ebitda and PBT CAGR at 9%, 10% and 10%, respectively, in FY19-FY22, it said.
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