Colgate Palmolive - Market share gain continues, Maintain Hold - Emkay

- Strong performance aided by volume growth and premiumisation; Revenue grows 20.5% yoy to Rs 7.3 bn and APAT grows 17% yoy to Rs1.1 bn; Volume growth at 11% yoy.

- Continues to gain market share; Jan'12-Jun'12 market share in toothpaste category is 210 bps higher yoy. Toothbrush category revive wherein the P&G was fast catching up.

- Ad spends (down 479bps); with weak rainfall in fray and aggression in ad spends in Oral care category by P&G, will need to closely track its volume growth in coming quarters.

- It has constantly performed on market share gain. Also, P&G global's commentary to reduce its focus on emerging markets to provide respite. Maintain HOLD on valuation.

Source : Equity Bulls

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