Colgate Palmolive’s stock price surged more than 6% to a 52-week high on Tuesday following strong first-quarter results for FY25. The shares climbed to ₹3,408.40 on the BSE.
Earnings Report:
- Net Profit: Colgate Palmolive India reported a consolidated net profit of ₹364 crore for Q1FY25, up 33% from ₹273.68 crore in the same quarter last year.
- Revenue: The company’s revenue increased 13% year-on-year to ₹1,485.8 crore from ₹1,314.7 crore.
- Demand: There was a significant demand pickup in rural markets, which grew faster than urban markets for the second consecutive quarter.
Performance Highlights:
- Toothpaste Sales: Colgate’s toothpaste portfolio saw double-digit growth with high-single digit volume growth.
- EBITDA: The company’s operational performance improved, with EBITDA rising 21.5% year-on-year to ₹508.3 crore and the EBITDA margin expanding by 240 basis points to 34%.
Analysts’ Views:
- Emkay Global: Upgraded earnings forecasts by 2-3% for FY25-27 and increased target price to ₹2,850 per share from ₹2,525, maintaining a ‘Reduce’ rating due to limited earnings visibility.
- Motilal Oswal: Raised EPS estimates for FY25 and FY26 by 6-7% but reiterated a ‘Neutral’ rating, with a new target price of ₹3,150 per share.
- Kotak Institutional Equities: Increased revenue forecasts by 2-5% and raised target price to ₹2,875 per share from ₹2,525, maintaining a ‘Reduce’ rating as the stock is seen as fully priced.
At 9:30 am, Colgate Palmolive shares were trading 6.08% higher at ₹3,404.40 on the BSE.
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