Colgate Q3 Review — Yes Securities Downgrades Both Rating, Target Price, Says Earnings Pressure To Sustain

Colgate is also lapping up high margin base and we believe Colgate will leverage its current healthy margins to invest behind brands/innovations to drive topline growth..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Yes Securities Report.Colgate-Palmolive (India) Ltd. Q3 FY25 performance was below our expectations largely due to lower imputed realizations and higher other overhead cost. Soft urban demand and plateauing rural growth pace will put pressure on topline growth going forward as well. Also, benefits from relaunch/restaging done in H2 FY24 for core brands is now starting to come into the base. Momentum in premium portfolio with support from further innovations, packaging upgrade, accessible sku’s and high decibel campaign to aid near-term growth. Colgate is also lapping up high margin base and we believe Colgate will leverage its current healthy margins to invest behind brands/innovations to drive topline growth. There is 4.2%/3.1%/3.2% cut in our FY25E/FY26E/FY27E EPS. Due to the recent pressure on sector valuations, we now assign 45 times on FY27E EPS, giving us a revised target price of Rs 2,940 (Rs 3,375 earlier). We thus downgrade our rating a notch to Neutral. Update on diversification being explored in personal care will aid rerating. .Click on the attachment to read the full report:.Tata Steel Q3 Review - Motilal Oswal Retains 'Neutral' Stance On The Stock, Revises Target Price — Here's Why.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Colgate Q3 Review — Yes Securities Downgrades Both Rating, Target Price, Says Earnings Pressure To Sustain

Update on diversification being explored in personal care will aid rerating, says the brokerage.

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