Colgate-Palmolive India - 1QFY13 - steady show - Standard Chartered

- Results in line with our estimates - Net sales, EBITDA and PAT growth of 20%, 22% and 17%, respectively.

- Overall volume grew 11%. Market share in toothpaste reached a high of 55%, the highest since 1998

- EBITDA margin increased 22bps yoy, leading to operating profit growth of 22%; PAT growth at 17% was lower due to reduced other income and a higher tax rate

- Stock trades at 1-year forward PER of 30x (30% premium to historical) and is difficult to justify given moderate 15% EPS CAGR over FY12-15E. Retain Underperform, but raise our price target of Rs1,040 from Rs986.

Source : Equity Bulls

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