Hold Colgate-Palmolive (India); target of Rs 1250: ICICI Direct

ICICI Direct recommended hold rating on Colgate-Palmolive (India) with a target price of Rs 1250 in its research report dated July 19, 2019.

Broker Research

July 19, 2019 / 13:17 IST

26 Aug, 2025 12:21

Volume

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ICICI Direct's research report on Colgate-Palmolive (India)

Colgate-Palmolive (CPIL) reported 4.2% YoY growth in revenue to Rs 1,084.9 crore, completely driven by 4% volume growth. Operating profit rose 6.5% to Rs 299.8 crore while operating margins increased 59 bps YoY to 27.6% mainly driven by 131 bps fall in other overhead to sales. However, a 50 bps increase in employee costs to sales and 17 bps increase in advertisement spend to sales, restricted expansion in operating margins. PAT declined 10.8% YoY to Rs 169.1 crore on higher depreciation. However, adjusted for one-off gain in the base quarter, net profit remained flat on a YoY basis.

Outlook

We believe unless CPIL takes price hikes, it would be difficult for the company to maintain its margins as its volume growth has been subpar. We reiterate our HOLD rating on CPIL with a revised target price of Rs 1250/share.

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