MOSL: COLGATE (Buy)-Poised for strong earnings growth over medium term
COLGATE: Poised for strong earnings growth over medium term; Inexpensive valuations bolster upside potentialCOLGATE: Poised for strong earnings growth over medium term; Inexpensive valuations bolster upside potential(CLGT IN, Mkt Cap USD5.7b, CMP INR1488, TP INR1815, 22% Upside, Buy)
We recently met Colgate's (CLGT) management to understand its strategy to drive growth amidst changing market dynamics. Key highlights:
** CLGT's market share has been stable over the past few quarters.
** Volume growth and market share expansion have taken precedence as part of its new strategy, even if it is at the cost of near-term profitability.
** Direct reach has increased by 30% over the past year.
** Good Rabi crop may not necessarily translate into a significant boost for FMCG sector volumes. It may take rural growth at par with urban growth. Anything additional will be a bonus.
Colgate Palmolive (India) Limited is engaged in the personal care and oral care business. The Company offers various personal care products, such as soaps, cosmetics and toilet preparations. The Company's oral care category of products includes toothpastes, toothbrushes, toothpowder, whitening products and mouthwash. In the toothpaste category, the Company offers products, including Colgate Total Charcoal Deep Clean Toothpaste, Colgate Active Salt Neem Toothpaste and Colgate Sensitive Pro-Relief (CSPR) Enamel Repair Toothpaste. In the toothbrush category, the Company offers the Colgate 360 degree Toothbrush range, including 360 degree Charcoal Gold, 360 degree Whole Mouth Clean, 360 degree Visible White and 360 degree Floss-Tip, and Colgate ZigZag Black Toothbrush. In the Personal Care category, the Company offers Palmolive's Foaming Hand Wash range in approximately two variants.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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