Colgate Palmolive shares gained a percent in morning on Tuesday after global brokerage firm has maintained outperform rating on the stock with a target price at Rs 1,375, implying 20 percent potential upside.
Low earnings expectations & reasonable valuations made risk-reward favourable for the stock, the research house said.
It further said it is convinced of a turnaround, but the road could be bumpy going ahead and margin is unpredictable in the initial turnaround phase.
Market share trends & volume growth can also be volatile at a quarterly level, it feels.
Meanwhile, Colgate Palmolive India has reported a 10.6 percent year-on-year growth in second quarter profit to Rs 196.37 crore, driven by good volume growth and operating income.
Revenue from operations during the quarter increased 7.66 percent to Rs 1,168 crore YoY, with volume growth of 7 percent.
At 10:39 hours IST, the stock was quoting at Rs 1,161.35, up Rs 11.20, or 0.97 percent on the BSE.
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