Mobility paves Samsung’s silver path
The Korean giant’s early bet on mobile phones helped it hit the $10-bn mark in India, but in its 25th year it ...
Prabhudas Lilladher
Colgate-Palmolive (Reduce)
CMP: ₹1,248.75
Target: ₹1,160
We downgrade Colgate Palmolive from Hold to REDUCE and cut EPS estimates of FY20-21 by 0.9-1.3 per cent given 1) 10-year low 1Q20 exit market share’ 2) 1Q tonnage volume growth of just 1.3 per cent; and 3) slowdown in toothpaste segment except naturals. However, Colgate is making a push for volumes led by 1) 30 per cent increase in direct distribution; 2) bringing family pack prices of Total closer to CDC; and 3) more offers in bundled packs.
Instead of being more aggressive for volume growth and market share expansion, Colgate has taken 6-8 per cent price increase post GST and operates at lifetime high margins. We believe Colgate’s intent to achieve 6-7 per cent volume growth looks difficult given its weak positioning in high growth naturals segment and intense competition from Dabur, Patanjali and other players in the naturals segment.
Although Colgate is indicating intent to grow personal care business (5 per cent of sales), its focus on niche premium segments (hand and body wash and now Palmolive Facial bars) remains a hurdle.
We believe Colgate will continue to trade at a discount to peers due to single category dependence and sustained loss of share in key category. We value the stock at 35xJune21 EPS (36x earlier) and cut target price to ₹1,160 (₹1,208 earlier). Downgrade to REDUCE.
The Korean giant’s early bet on mobile phones helped it hit the $10-bn mark in India, but in its 25th year it ...
Antrix should adopt a different tactic than merely fighting over jurisdiction: Experts
Invest in relationships, enterprise, behaviour, effort and learning
From different types of osmoses to new membranes, researchers have come up with ways of drawing water
High valuation and stiff competition from larger players are a dampener
Investors with a short-term perspective can buy The New India Assurance Company (NIACL) stock at current ...
₹1490 • HDFC Bank S1S2R1R2COMMENT 1475146015051520 Fresh short positions are recommended with a stiff ...
Will a stock continue its current trend or will it reverse? We tell you how you can read chart patterns to ...
In these isolated times when people yearn for a slice of the familiar, amateur and professional chefs are ...
‘You ready to go to work?’ Joe Biden had asked Kamala Harris before naming her as his running mate. ‘Oh my ...
Writer Narendra’s latest book, rich with vignettes from Bastar and his native village in Uttar Pradesh, ...
On the eve of his 86th birthday, a peek into an interview-based book that reveals the actor’s many moods, ...
Digital is becoming dominant media, but are companies and their ad agencies transforming fast enough to make a ...
Slow Network, promoted by journalist-lyricist Neelesh Misra, pushes rural products and experiences
How marketers can use the traditional exchange of festive wishes meaningfully
For Fortune, a brand celebrating its 20th anniversary, it was a rude shock to become the butt of social media ...
Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ...
Corporate social responsibility (CSR) initiatives of companies are altering the prospects for wooden toys of ...
Aequs Aerospace to create space for large-scale manufacture of toys at Koppal
And it has every reason to smile. Covid-19 has triggered a consumer shift towards branded products as ...
Please Email the Editor