Accumulate Colgate Palmolive; target of Rs 1708: Prabhudas Lilladher

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Prabhudas Lilladher's research report on Colgate Palmolive

We are increasing EPS estimates by 2.5%/2.6% for FY23/FY24 due to strong margin strength in 4Q in inflationary environment and stable market share. CLGT has increased focus sustaining growth in the core segments (CDC and Toothbrushes) and incremental growth from innovations in Oral care, Body wash and Face cleansing products. Bounce back in family toothpaste segment and slight moderation in growth rates of Naturals segment augurs well for sustaining share in highly penetrated Toothpaste category. We expect rural demand to recover given favorable monsoons, higher crop prices, revival in housing and Govt capex which would boost demand. CLGT is focusing on accelerating growth led by 1) Ramping up innovations (Colgate Gum Expert, Colgate Visible White) 2) Increasing promotion intensity 3) Entry into premium face cleansing category (foams, scrubs and masques under Palmolive brand). We estimate 9.1% Sales and 7.9% PAT CAGR over FY22-24.

Outlook

Although CLGT’s growth is unexciting, favorable financial parameters (35x FY24PE,2.6% Dividend yield, 90%+ payout and 100% ROE) limit downside. We value CLGT at 37xFY24 EPS and assign a Target of Rs 1708 (earlier Rs 1664 on 37xFY24 EPS). Retain Accumulate

For all recommendations report, 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.

Read More