Sharekhan's research report on Colgate Palmolive
Q3FY2021 net revenue grew by 7.4% (as against a 5.2% growth in Q2FY2021) as domestic business grew by 10% (led by a ~7% volume growth). Gross margins improved by 403 bps to 69.8%. Despite higher advertisement spends, OPM expanded by 253bps to 30.1%. Colgate Palmolive (India) Ltd is striving to achieve better growth over FY2020-25 by creating awareness on dental habits, winning consumer minds and launching consumer-centric products with a stable go-through market strategy.
We have fine-tuned our earnings estimates for FY21E/22E/23E to factor in better-than-expected OPM. We maintain a Buy on the stock with price target of Rs. 1,850.
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