Hold Colgate-Palmolive (India), target price Rs 1440: ICICI Direct

ICICI Direct has hold call on Colgate-Palmolive (India) with a target price of Rs 1440. The current market price of Colgate-Palmolive (India) is Rs 1452.35. Time period given by analyst is 12 months when Colgate-Palmolive (India) price can reach defined target.

Colgate-Palmolive (India), incorporated in the year 1937, is a Large Cap company (having a market cap of Rs 39470.56 Crore) operating in FMCG sector.

Colgate-Palmolive (India) key Products/Revenue Segments include Personal Care, Service Income and Scrap for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Standalone Total Income of Rs 1301.68 Crore, down -6.94 % from last quarter Total Income of Rs 1398.76 Crore and up 1.24 % from last year same quarter Total Income of Rs 1285.80 Crore. Company has reported net profit after tax of Rs 243.24 Crore in latest quarter.

The company’s top management includes Mr.Mukul Deoras, Mr.M S Jacob, Mr.Surender Sharma, Mr.Sekhar Natarajan, Ms.Gopika Pant, Mr.Vikram Singh Mehta, Ms.Sukanya Kripalu, Dr.(Ms.)Indu Shahani, Ms.Shyamala Gopinath. Company has SRBC & Co LLP as its auditors. As on 31-12-2022, the company has a total of 27 Crore shares outstanding.

Investment Rationale
Gross margin is expected to remain elevated at ~65% given the decline in crude based commodity prices. The company would increase ad spends to perk up volumes specifically in natural & Ayurveda space.