Hold Colgate; target of Rs 855:KRChoksey

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26 Aug, 2025 12:21

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KRChoksey's research report on ColgateColgate-Palmolive (India) Ltd. declared its Q3FY16 results. Net Sales for Q3FY16 stood at INR 10148.5 Mn which grew by 2% y-o-y and de-growth by 2% q-o-q out of which volume growth was about 1%. EBIDTA stood at INR 2314.1 Mn with 22.8% margin. Growth in EBITDA is about 19% y-o-y and –de-growth of 9% q-o-q and due to higher employee cost and other expense. PAT stood at INR 1594.1 Mn and PAT margin was at 15.7%. PAT saw growth of 21.9% y-o-y and 1.6% q-o-q for Q3FY16.Colgate Palmolive Ltd has maintained its leadership position in the oral care segment with multiple benefits at various price points. It is one of the most trusted brands in the markets. Focus always remains to create new segments through innovation and technology. We believe that the concern remains for Colgate as it is facing competition from unorganized player “Pantanjali” with its products in oral care & personal care. At CMP INR 855, the stock is trading at EPS of INR 25.3 FY18E. We believe the stock would feel pressure and would struggle for volume growth going forward so we are downgrading our recommend to “HOLD” rating on the stock with a target of INR 897 and a potential upside of 4.9%.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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