Multi Baggers

Hem Securities

5.30 AM Jan 1st 1970

Colgate

BSE ID : 500830 NSE ID : COLPAL

RECOMMENDED PRICE 1271.00

PEAK FROM RECO 2061.55 62.20%

CURRENT PRICE 2864.60 Resource id #12

Colgate-Palmolive (India) Limited is India`s leading provider of scientifically proven oral care products with multiple benefits at various price points. Along with it robust financial performance & strong future outlook is making a case for buy on the stock. Hence, we are positive on stock & recommending ``Buy`` with price target of Rs 1450 for long term horizon.

Colgate-Palmolive (India) Limited is India’s leading provider of scientifically proven oral care products with multiple benefits at various price points. The range includes toothpastes, toothpowder, toothbrushes and mouthwashes under the “Colgate” brand, as well as a specialized range of dental therapies under the banner of Colgate Oral Pharmaceuticals. The Company also provides a range of personal care products under the ‘Palmolive’ brand name.

Strong performance by key brands: In the ‘Naturals’ portfolio Colgate Swarna Vedshakti toothpaste continues to perform extremely well. Company recently launched the toothpaste in multiple pack sizes at different price points, nationally, where it continues to show a positive consumer confidence with strong repeat purchases. Also, company has relaunched India’s largest selling toothpaste and Colgate’s flagship brand - Colgate Strong Teeth, on an evocative platform of 'Daant Banaye Andar se Strong’ (Strengthens Teeth from within). The all new brand proposition unveiled through a nationwide 360° campaign across all consumer touch points.

The company is currently trading at 46.39 of TTM eps of Rs 27.40 while it is trading at 44.51x of FY19E eps & 39.30x of FY20E eps. Going with the facts like increasing MSPs and normal monsoon, election year, freebies, loan waivers, we expect strong demand for products of company will emerge from rural areas. Along with it robust financial performance & strong future outlook is making a case for buy on the stock. Hence, we are positive on stock & recommending “Buy” with price target of Rs 1450 for long term horizon.

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colgate_Multibugger.pdf