Hold Colgate Palmolive (India); target of Rs 1702: KR Choksey

KR Choksey recommended hold rating on Colgate Palmolive (India) with a target price of Rs 1702 in its research report dated May 17, 2023.

Broker Research

May 17, 2023 / 23:15 IST

hold

KR Choksey's research report on Colgate Palmolive (India)

In Q4FY23, CLGT reported revenue from operations of INR 13,506 mn (+3.8% YoY/ +4.6% QoQ). For FY23, revenue was INR 52,262 mn (+2.5% YoY). EBITDA for the quarter was INR 4,519 mn (+5.2% YoY/ +25.0% QoQ). EBITDA margin for the quarter improved by 46 bps YoY and 547 bps QoQ to 33.5%. For FY23, EBITDA and EBITDA margin contracted by 1.2% YoY and 110 bps YoY, respectively. PAT for the quarter was INR 3,162 mn (-2.3% YoY/ +30.0% QoQ). Adj. PAT was INR 3,181 mn (-1.7% YoY/ +30.8% QoQ). For FY23, PAT was INR 10,472 mn (-2.9% YoY) and Adj. PAT was INR 10,584 mn (-1.9% YoY).

Outlook

We apply P/E multiple of 35.5x on FY25E EPS of INR 47.9 and arrive at a target price of INR 1702 per share (INR 1,638 earlier), having an upside potential of 1.9% from CMP. Considering the run up in share price and limited changes to the estimates and valuation, we revise our rating to “Hold” from “Accumulate” earlier on the shares of Colgate Palmolive India.

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