Colgate-Palmolive (India) Ltd., incorporated in the year 1937, is a Large Cap company (having a market cap of Rs 42957.41 Crore) operating in FMCG sector.
Financials
For the quarter ended 31-03-2021, the company reported a Standalone Total Income of Rs 1289.81 Crore, up 3.87 % from last quarter Total Income of Rs 1241.81 Crore and up 18.23 % from last year same quarter Total Income of Rs 1090.90 Crore. Company reported net profit after tax of Rs 314.66 Crore in latest quarter.
Investment Rationale
While there is no material change in our FY22E EPS, the brokerage reduces FY23E EPS forecasts by ~6%, weighed by weak sales trends and lower margins. With weak topline and earnings growth likely to sustain going forward, the valuation at 37.6x FY23E EPS appears fair. It assigns a value of 40x FY23E to arrive at TP of INR1,700/share.
Promoter/FII Holdings
Promoters held 51 per cent stake in the company as of March 31, 2021, while FIIs held 16.9 per cent, DIIs 10.3 per cent and public and others 21.8 per cent.
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)
