Colgate-Palmolive (CLGT IN) Hold: Growth push shows some results

研报英文原文证据摘录

Colgate-Palmolive (CLGT IN) Hold: Growth push shows some results

hannel inventories. 52-WEEK PRICE (INR)

2700.00

Key highlights from management call: 1) Outlook: Gross margins will be in the

typical range, and EBITDA margin will depend on the level of advertising intensity. 2150.00

2) Low-single-digit price hikes have been passed through in response to cost inflation 1600.00

and will be visible in the market over the next few weeks. 3) The company targets 05/25 Target price: 2150.0011/25 05/26

volume growth in Q4 to sustain into FY27 with an equal split of value and pricing for High: 2513.10 Low: 1788.70 Current: 2164.90

FY27 too. 4) The company is working on getting some of its international portfolio into Source: LSEG IBES, HSBC estimates

India. 5) Competitive promotional activity levels remain intense. 6) There was a

Nihal Mahesh Jham*, CFA

160bp (proportion of revenues) impact in Q4 due to inverted duty structure. 7) Key Senior Analyst, India Consumer & Retail

changes include: a) Core brand (Strong Teeth) has seen a step-up in growth on the HSBC Securities and Capital Markets (India) Private

Limited

back of product superiority, Max Fresh is the fastest growing brand in the portfolio; nihal.m.jham@hsbc.co.in

b) Premium brands’ sales have improved on the back of higher advertising spends. +91 22 66283771

Pratik Gothi*

Maintain Hold rating with TP of INR2,150: We increase our FY27-28e revenue and Analyst, India Consumer & Retail

HSBC Securities and Capital Markets (India) Private

EBITDA estimates by 1-2% to reflect slightly improving performance, although the Limited

overall growth trajectory remains largely unchanged. We apply forward PE multiple of pratik.gothi@hsbc.co.in

+91 80 6737 3929

35x to our TTM-Mar’28 EPS estimate of INR61.43 (from INR60.11) to derive our