Colgate-Palmolive Q1 Results Review - Volume Print Improves; Margin, Valuations Peak: Motilal Oswal

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..Motilal Oswal Report.Colgate-Palmolive India Ltd. delivered a 13% YoY revenue growth to Rs 15 billion (estiamte Rs 14.4 billion) in Q1 FY25. Volume growth spiked at a high-single digit (flattish in the previous four quarters). The rural market continued to display positive signs of demand recovery, and it is growing ahead of urban. HUL reported mid-single digit revenue growth in oral care in Q1 FY25.Gross margin continued to expand, up 220 basis points YoY to 70.6%, aided by moderating raw material prices, cost savings, and price-led growth. In line with the industry trend, advertising and promotion spending was high at 10% YoY. Despite this, Ebitda margin expanded 240 bp YoY to 34%. Ebitda jumped 22% YoY to Rs 5.1 billion. Product innovations and marketing efforts have enabled Colage to achieve volume growth in Q1 FY25. While price hikes have contributed to overall growth in FY24, the positive volume trend indicates a promising outlook. It will be important to monitor if this momentum sustains throughout FY25.  The personal care portfolio is under-indexed; we would like to see if Coalge can boost this portfolio. We believe it will be challenging for Colgate to expand its operating margin level. The current valuations at 56 times/52 times price/earning on FY25E/ FY26E capture most of the near-term triggers. We reiterate our Neutral rating on the stock with a target price of Rs 3,150 (based on 50 times June-26E EPS)..Click on the attachment to read the full report:.Colgate-Palmolive Q1 Results Review - Healthy Performance Across Portfolio; Upgrade To Reduce: Dolat Capital.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 Print Improves; Margin, Valuations Peak: Motilal Oswal

The brokerage raises its EPS estimates for FY25 and FY26 by 6-7% on the back of improving volume performance, aggressive pricing strategy, and consistent operating margin expansion.

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Colgate-Palmolive Q1 Results Review - Volume Print Improves; Margin, Valuations Peak: Motilal Oswal

The brokerage raises its EPS estimates for FY25 and FY26 by 6-7% on the back of improving volume performance, aggressive pricing strategy, and consistent operating margin expansion.

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