The Hindu Business Line : Colgate shines on rising investor interest in FMCG

TWO block deals involving over 22 lakh shares on the BSE in Colgate-Palmolive stock on Thursday changed the complexion of trading in the FMCG counter.

The deals were struck at Rs 140, lower than Wednesday's closing of Rs 141.4 on the BSE. After the deals were through, the stock did attract some trading activity but closed lower on tapering of buying interest at Rs 139.50. The final volume tally for the counter on the exchange was 28.52 lakh (91,011) shares.

On the NSE, it recorded 2.20 lakh (1.47 lakh) shares and of the total traded quantity on the exchange, some 55.06 per cent were presented for delivery. The average daily volume of the stock in the last 15 trading sessions is 57,000 shares on the BSE and 96,300 shares on the NSE.

According to Mr Ketan Thacker of Anagram Stockbroking, some large investors, who are exiting HLL stock over its poor results for the quarter ended on December 31, 2003, are reportedly entering FMCG counters such as Colgate. In sharp contrast, Colgate-Palmolive posted a 30 per cent increase in its net profit in the third quarter to December 31, 3003.

The Colgate stock today closed at 20.8 times its trailing four-quarter earnings per share of Rs 6.70. The counter's 52-week high is Rs 174.40.

The oral care major is the latest to join the bandwagon of FMCG firms setting up manufacturing facility in the northern region to take advantage of excise duty exemption provided by some states. Colgate is setting up its second toothpaste unit in Himachal Pradesh, the first being around Mumbai. Godrej Consumer Products has also set up a facility for toilet soaps in Himachal.