Accumulate Colgate; target of Rs 1052: Prabhudas Lilladher

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26 Aug, 2025 12:21

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Prabhudas Lilladher's reserach report on Colgate PalmoliveCLGT has been able to thwart successful entry of P&G in Indian market by aggressive advertising, increased focus on market development and innovation. CLGT has launched value added variants in Colgate Total, Sensitive, Simply White and Active Salt. It has also launched “Maximum cavity protection with Sugar acid neutralizer” and Active Salt Neem and Colgate Total with Charcoal, having natural ingredients. We believe that the strong brand and product investments during the downturn will enable steady increase in market share during the recovery.We estimate 10% PAT growth for CLGT in FY16 and 18% CAGR over FY16‐18 as the impact of higher excise, depreciation and taxes is absorbed in FY16. We expect premium valuations to sustain given ROE, ROCE and dividend payout of ~70%. We value the stock at 35xSept 17 EPS and arrive at target price of Rs1027, a 7.7% upside. Retain Accumulate.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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