Buy Colgate Palmolive, tgt Rs 448: Angel

Angel Broking has maintained its buy rating on Colgate Palmolive (India) with a target price of Rs 448 in its July 17, 2008 research report. "For 1QFY2009, Colgate Palmolive (India) posted a robust Topline growth of 16.2% yoy to Rs 408 crore (Rs 351), marginally above our estimate of a 14.2% growth to Rs 400 crore. Colgate India’s earnings for the quarter (before exceptional items) registered a steady growth of 16.2% yoy to Rs 71.9 crore (Rs 61.9 crore) above our expectation of Rs 68.8 crore, a yoy growth of 11.2%."

"At the CMP of Rs 348, the stock trades at a modest 15.5x FY2010E EPS of Rs 22.5. Moreover, a 4.3% dividend yield (FY2009E) provides additional cushion to the stock, mitigating downside risks. We maintain Buy on the stock, with a target price of Rs 448," says Angel's research report.

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