Colgate-Palmolive - Sustainable Growth Proposition, Upgrade Hold - Emkay

- Strong performance aided by margin expansion; Revenue grows 17.5% yoy to Rs 6.8 bn and APAT grows 14.7% yoy to Rs1.3 bn; Volume growth at 12% yoy.

- Colgate on a high note; Year-end market share in toothpaste category at 54% which is 100 bps higher then FY11 and 500 bps higher then FY08.

- Increases dividend payout to 75% with DPS of Rs25/Share; Increase in working capital requirements and invested capital for FY12 are only negatives.

- Colgate strategy has sustainable value growth proposition aided with Ebidta margin expansion; Upgrade to Hold with target price of Rs1155/Share.

Source : Equity Bulls

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