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Accumulate Colgate Palmolive (India); target of Rs 1753: KR Choksey

KR Choksey recommended accumulate rating on Colgate Palmolive (India) with a target price of Rs 1753 in its research report dated July 29, 2022.

July 30, 2022 / 10:45 PM IST
 
 
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KR Choksey's research report on Colgate Palmolive (India)


In Q1FY23, CLGT reported revenue of INR 11,968 Mn, a growth of 2.6% YoY and a decline of 8.0% QoQ. The quarter was impacted by overall rural slowdown and inflationary pressures. EBITDA for the quarter was INR 3,257 Mn, which was lower by 8.3% YoY and 24.2% QoQ. EBITDA margin was at 27.2%, a decline of 325 bps YoY and 579 bps QoQ. Net Profit stood at INR 2,097 Mn which is a decline of 10.1% YoY/ 35.2% QoQ. Q1FY23 was impacted by an exceptional item of INR 93 Mn related to severance and related expenses with respect to certain organization structure changes. Excluding that, Adj. Net Profit declined by 6.1% YoY/ 32.3% QoQ. Adj. NPM was at 18.3% which was lower by 170 bps YoY and 657 bps QoQ.



Outlook


We apply P/E multiple of 38x on FY24E EPS of INR 46.1 and arrive at a target price of INR 1,753 per share (previous target price of INR 1,802), an upside potential of 13.2% from CMP. Accordingly, we maintain our rating at “Accumulate” on the shares of Colgate Palmolive India.

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Colgate Palmolive (India) - 290722 - kr

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first published: Jul 30, 2022 10:43 pm
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