Colgate-Palmolive Q1 Results Review - Volume Beat, Disclosure, A Welcome Surprise: Yes Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Colgate-Palmolive India Ltd. delivered robust Q1 FY25 performance. Domestic revenue growth stood at a two year compound annual growth rate of 12.6% on the back of high singledigit volume growth in Toothpaste segment (higher than our estimate of 3%). Gross margin profile continues to improve, which led to higher operating margins versus our estimate. Pickup in rural market (outpaced urban markets for second consecutive quarter), relaunch/restaging of key brands done in H2 FY24, activations through campaigns, along with premiumization should continue to support near-term growth. We have been surprised by the company on margins over the last few quarters. Assuming current margin profile stays and sees further modest improvement in FY25 and FY26, we see a 5.1%/7.4% upwards revision in our FY25E/FY26E EPS. Disclosure of volume growth improvement will be welcomed by the street, but we hope it remains part of disclosure in future as well. We roll-forward our valuation to Sep’26E EPS and assign a higher target multiple of ~48 times now, which changes our target price to Rs 3,300 (Rs 2,700 earlier). Maintain Neutral. Market share movement and update on diversification being explored in personal care will aid further rerating..Click on the attachment to read the full report:.Colgate-Palmolive Q1 Results Review - Volume Print Improves; Margin, Valuations Peak: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Colgate-Palmolive Q1 Results Review - Volume Beat, Disclosure, A Welcome Surprise: Yes Securities

Market share movement and update on diversification being explored in personal care will aid further rerating, says the brokerage.

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Colgate-Palmolive Q1 Results Review - Volume Beat, Disclosure, A Welcome Surprise: Yes Securities

Market share movement and update on diversification being explored in personal care will aid further rerating, says the brokerage.

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