Colgate-Palmolive - Market share gain continues, Upgrade to BUY - Emkay

- Strong performance aided by vol. growth and premiumisation; Revenue grows 17.7% yoy to Rs 7.7 bn and APAT grows 34% yoy to Rs1.5 bn (led by lower tax and cost rationalization)

- Volume growth resilient at 10% yoy with continues market share gain. Jan'12-Sep'12 market share in toothpaste category is 200 bps higher yoy

- Ebitda surged 30.2% to ~INR 1.6bn (9% higher than our estimate) primarily led by lower employee cost (@7%; lowest since past 20 quarters) and ad spends (down 590bps)

- We are enthused by its constant market share gain and resilient price led growth despite tough scenario. Upgrade to BUY with price target of Rs. 1400/share (30x FY14E earnings)

Source : Equity Bulls

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