Brokerages have mixed views on Colgate Palmolive’s Q3 performance. Jefferies sees revenue growth to have been lower than estimates.
The FMCG firm reported 2.6 percent rise in its Q3 net profit at Rs 192.1 crore versus Rs 171 crore in the same quarter last fiscal.
Revenue was up 6.4 percent at Rs 1,099 crore against Rs 1,033 crore.
Operating profit or EBITDA was up 11 percent at Rs 314.1 crore against Rs 283 crore, while margin was at 28.6 percent versus 27.4 percent.
Toothpaste volume growth was at 7 percent for the quarter ended December 2018.
Here is a look at how brokerages have reacted to its Q3 performance.
Brokerage: Morgan Stanley | Rating: Underweight | Target: Rs 1,035
The global research firm said that the Q3 earnings were in-line, with toothpaste volumes growing 7 percent. Further, it said that the company is among the least preferred in staple order of preference.
Brokerage: Jefferies | Rating: Hold | Target: Raised to Rs 1,365 from Rs 1,225
Q3 revenue growth was slightly lower while EBITDA & PAT were in-line. It raised FY19-21 EPS by over 1%-4% despite a marginal cut in revenues.
Brokerage: CLSA | Rating: Buy | Target: Rs 1,575
CLSA said that the focus on growth was evident in Q3 performance. It remains enthused on the company’s growth focus.
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