Add Colgate Palmolive, target of Rs 400: IIFL

IIFL has rated Colgate Palmolive (India) as an 'ADD' with a target price of Rs 400 in its July 18, 2008 research report. "Colgate’s 1QFY09 results beat our expectation, with sales up 16% YoY (our estimate: 14%) and earnings up 18% (14% estimated). Volume growth accelerated to 11.5% YoY, the strongest since 3QFY07."

"We have moved to a new rating structure from July 14, we now rate Colgate an Add (Buy earlier). Our forecasts remain unchanged, and so does our target price, at Rs 400. CPI is trading at a P/E of 14.7x on FY10ii, which is at a 24% discount to its five-year average P/E of 19.3x. We believe this valuation is attractive in view of its stable revenue and earnings growth, 3.8% dividend yield and superior capital efficiency," says IIFL's research report.

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