Religare's research report on ColgateCLGT posted below-expected topline growth of 1.8% YoY for Q3FY16 as volume growth disappointed at 1% YoY. Organic growth however was higher at 7% YoY adjusting for lower excise benefits. EBITDA/adj. PAT grew 19.1%/7.6% YoY as a cut in A&P spends buoyed margins to 22.2% (RCMLe: 21.8%). We pare our EPS estimates to build in lower topline growth and roll over to a Mar’17 TP of Rs 1,080 (Sep’16 TP of Rs 1,100). Valuations at 33x/28x FY17/FY18 earnings are attractive. Maintain BUY.We pare our FY16-FY18 EPS by 4-9% in view of the lower sales growth than envisaged earlier. However, we maintain our BUY rating on attractive valuations of 33x/28 FY17/FY18 and roll over to a Mar’17 TP of Rs 1,080 (from a Sep’16 TP of Rs 1,100). 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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