Buy Colgate ; target of Rs 1520: Motilal Oswal

Motilal Oswal 's research report on Colgate

Colgate’s (CLGT) 4QFY20 results were disappointing relative to expectations, but understandable, given the COVID-19 related disruptions highlighted by peers that have already declared results. We maintain ‘Buy’ rating on CLGT due to inexpensive valuations (below 10-year average P/E), relatively resilient portfolio (v/s peers) in an uncertain time, among the best of breed balance sheet metrics and incipient signs of market share gains.

Outlook

We arrive at a TP of INR1,520 (target multiple of 42x FY22E EPS, based on 5-year average).

Colgate 23052020