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Edelweiss Research is also available on www.edelresearch.com,
Bloomberg EDEL <GO>, Thomson First Call, Reuters and Factset.
Edelweiss Securities Limited
Colgate Palmolive’s (Colgate) revenue was in line with our estimate while
PAT surpassed expectations due to lower tax rate (favourable order for
prior period), tight control on other costs (likely lower promotions and
scale benefits) and a drop in staff costs (Q2FY12 costs higher due to one-
off – VRS compensation). Key positives were: (i) ~11% YoY volume growth
in toothpaste category (overall volume growth of ~10% YoY); (ii) highest
market share in toothpaste at 54.3% (in Jan-Sep 2012 against 52.3% in
Q2FY12) and (iii) volume market share of 39.0% (Jan-Sep 2012) in the
toothbrush category. The key negative was 177bps YoY dip in gross
margin. Colgate has seen minor correction in overall volume growth (1-
2% points dip from 12% average in FY12 and 11% in Q1FY13) due to
decline in CSD sales (contributing ~6% of sales, decline also seen in other
Consumer companies) and some softness in growth in a few top-end
products. We like Colgate’s dominance and investment in growth drivers
(mouthwash, new toothpaste variants – Sensitive, Ice and launches in
toothbrush – Electric, Kid’s special range). Maintain ‘HOLD’.
Raw material pressure mounts – highest in past 11 quarters
Colgate’s revenue jumped 17.5% YoY to ~INR7.9bn (against Dabur’s 10.2% growth in
toothpaste and HUL’s double digit growth in oral care). Gross margin contracted
177bps YoY. COGS pressure was offset by lower employee costs (down 212 bps YoY)
and other expenses (down 317bps YoY); ad spends inched up 50bps YoY. EBITDA
margin thus expanded a massive 302bps YoY to 22.2%. A spurt of 45.5% YoY in PAT
was aided by lower tax rate of 19.4%. The tax rate is expected to increase to 25-26% in
FY13E and staff costs are likely to stabilize at current levels (7-8% of sales).
Outlook and valuations: Fairly valued over near term; maintain ‘HOLD’
We continue to like Colgate’s focus on innovation and dominance. The toothpowder
category posted a double digit volume decline which indicates up-trading of consumers
to toothpaste which is beneficial for Colgate. We expect P&G to enter Toothpaste over
the longer term which is the key risk to Colgate. At CMP, the stock is trading at 30.6x
and 26.6x FY13E and FY14E, respectively and appears fairly valued over the near term.
We maintain ‘HOLD’ and rate the stock ‘Sector Performer’.
RESULT UPDATE
COLGATE PALMOLIVE Bites more into the toothpaste market
EDELWEISS 4D RATINGS
Absolute Rating HOLD
Rating Relative to Sector Performer
Risk Rating Relative to Sector Medium
Sector Relative to Market Underweight
MARKET DATA (R: COLG.BO, B: CLGT IN)
CMP : INR 1,237
Target Price : INR 1,349
52-week range (INR) : 1,288 / 932
Share in issue (mn) : 136.0
M cap (INR bn/USD mn) : 168 / 3,116
Avg. Daily Vol.BSE/NSE(‘000) : 87.3
SHARE HOLDING PATTERN (%)
Current Q1FY13 Q4FY12
Promoters %
51.0 51.0 51.0
MF's, FI's & BK’s 6.0 6.0 6.6
FII's 20.9 20.9 20.2
others 22.1 22.1 22.2
* Promoters pledged shares
(% of share in issue)
: NIL
PRICE PERFORMANCE (%)
Stock Nifty
EW Consumer
Goods Index
1 month 4.6 (0.0) 4.9
3 months 6.5 11.2 13.5
12 months 26.2 12.7 45.0
Abneesh Roy
+91 22 6620 3141
Hemang Gandhi
+91 22 6620 3148
Pooja Lath
+91 22 6620 3075
India Equity Research| Consumer Goods
October 29, 2012
Financials
Year to March Q2FY13 Q2FY12 % change Q1FY13 % change FY12 FY13E FY14E
Revenues (INR mn) 7,924 6,744 17.5 7,561 4.8 26,932 31,877 37,256
EBITDA (INR mn) 1,758 1,292 36.0 1,625 8.2 5,785 7,158 8,433
PAT (INR mn) 1,451 997 45.5 1,174 23.5 4,465 5,493 6,322
Diluted EPS (INR) 10.7 7.3 45.5 8.6 23.5 32.8 40.4 46.5
Diluted P/E (x) 37.7 30.6 26.6
EV/EBITDA (x) 28.5 22.8 19.3
ROAE (%) 109.0 117.1 116.7
Consumer Goods
2 Edelweiss Securities Limited
Likely P&G’s entry in the toothpaste market over longer term
P&G launched Oral‐B toothpaste in several countries like Venezuela, Greece, Portugal and
Israel, and aims to launch it in several more markets over the next six months. We believe
the Indian toothpaste market is a tough nut to crack as it is very strongly dominated by
Colgate which has sustained its leadership for over a decade owing to its strong distribution
network, brand equity, high level of consumer awareness programmes through continuous
on-ground events. It will thus be a difficult and expensive affair for P&G to establish ground
in the Indian toothpaste market over the short term given that P&G’s performance in China
(one of their largest markets) continues to lag competitors. Hence its aggression in India is
likely to be on lower side as it is likely to focus on existing portfolio. However, in the longer
term, it is a logical step for P&G to expand its presence in the oral care market (already
present in toothpaste category and doing well).
Up-trading to toothpaste augurs well for Colgate
Despite the impact of CSD slowdown (contributing ~6% of sales), Colgate clocked 10% YoY
growth in overall volume in Q2FY13. Of the overall volume growth, ~11% YoY was on
account of the toothpaste category. While the toothbrush category reported volume surge
of ~16% YoY, the toothpowder category posted a double digit volume decline which
indicates up-trading of consumers to toothpaste which is beneficial for Colgate with its
superior brand equity. The Mouthwash category also performed well, and has a market
share of 26.8% (Jan-Sep 2012).
Capacity expansion
Colgate has leased 39acres of land in Gujarat at Sanand for INR426mn for a toothpaste
plant. It also plans to set up a toothpaste manufacturing plant at Sri City in southern Andhra
Pradesh where it has paid INR114mn as a part of initial lease payment for 29acres of land.
Pace of new launches keeps intact
Colgate launched two new offerings in the toothpaste category with Colgate Total Advance
Whitening and Colgate Max Fresh Ice toothpaste.
Commencement of ‘Oral Health Month’
Colgate along with the Indian Dental Association (IDA) has commenced its 9th
edition of Oral
Health Month (2-month long intensive oral care awareness initiative) aimed at improving
the oral health condition and generating awareness about tooth cavities nationwide. The
initiative is backed with 13 mobile dental vans that would travel across 39 cities.
Battle for Indian toothpaste market
Despite some effect of CSD slowdown (contributing ~6% of sales), Colgate clocked 10% YoY
growth in overall volume in Q2FY13. While its toothpaste posted a 11% YoY growth in
volumes, Colgate’s strongest competitor in the toothpaste category, Hindustan Unilever’s
(HUL) oral care portfolio grew in double digits YoY (largely volume led) backed by robust
growth in Close Up (re-launched in Q1FY13) and the Pepsodent brands (driven by premium
range). On the other hand, Dabur’s toothpaste category growth at 10.2% YoY was moderate
due to Company’s realignment in focus from volume to margin play. This resulted in under
performance of its discount brand Babool (contributing ~50% of Dabur’s oral care
revenues). Its premium segment (Meswak and Dabur Red toothpaste) posted good growth.
Colgate Palmolive
3 Edelweiss Securities Limited
Outlook and valuations: Fairly valued over near term; ‘HOLD’
We continue to like Colgate’s continued focus on innovation, market stronghold and
building brand equity. Based on its superior product mix, increasing toothpaste volume
market share and higher growth compared to competitors, we have assigned the stock
higher target P/E of 29.0x (28.0x earlier) and assign it a target price of INR1,349. We have
also increased our EPS for FY13 and FY14 by 4.8% & 4.3% respectively (to INR40.4 and
INR46.5) as the company has efficiently reduced its costs through scale benefits and lesser
promotion. We maintain ‘HOLD’ and rate the stock ‘Sector Performer’ on relative return
basis.
Chart 1: COGS pressure leads to gross margin contraction YoY
Source: Company, Edelweiss research
Chart 2: EBITDA margin expand YoY
Source: Company, Edelweiss research
45.0
50.0
55.0
60.0
65.0
70.0
Q1
FY
10
Q2
FY
10
Q3
FY
10
Q4
FY
10
Q1
FY
11
Q2
FY
11
Q3
FY
11
Q4
FY
11
Q1
FY
12
Q2
FY
12
Q3
FY
12
Q4
FY
12
Q1
FY
13
Q2
FY
13
(%)
10.0
15.0
20.0
25.0
30.0
35.0
Q1
FY
10
Q2
FY
10
Q3
FY
10
Q4
FY
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Q1
FY
11
Q2
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12
Q1
FY
13
Q2
FY
13
(%)
Expert Protection Range launch
has helped Hindustan Unilever
post double digit growth in Oral
care.
Consumer Goods
4 Edelweiss Securities Limited
Chart 3: EBITDA Margin profile: Other expenditure contract 317bps
Source: Company, Edelweiss research
Chart 4: Tax rate dip to 19.4%
Source: Company, Edelweiss research
16.0
17.4
18.8
20.2
21.6
23.0
EBITDA
Q2FY12
COGS Staff
expenses
Ad spends Others EBITDA
Q2FY13
(%)
0.0
6.0
12.0
18.0
24.0
30.0
Q1FY10
Q2FY10
Q3FY10
Q4FY10
Q1FY11
Q2FY11
Q3FY11
Q4FY11
Q1FY12
Q2FY12
Q3FY12
Q4FY12
Q1FY13
Q2FY13
(%)
Colgate Palmolive
5 Edelweiss Securities Limited
Table 1: Balance sheet as on 30th
September 2012
Source: Company, Edelweiss research
(INR mn) Sep-12 Mar-12 % change
Sources of funds
Share capital 136 136 -
Reserve & surplus 4,788 4,218 13.5
long term liabil ity 7 8 (7.9)
Long term provisions 305 301 1.3
Trade payables 4,100 3,690 11.1
Other current l iabil ities 3,371 2,172 55.2
Short term provisions 817 772 5.8
Total 13,523 11,296 19.7
Uses of funds
Fixed assets 3,532 3,238 9.1
Non current investments 371 471 (21.2)
Deferred tax assets 117 121 (3.1)
Long term loans & advances 535 225 137.6
Other non current assets 3 4 (16.7)
Current investments 100 - NM
Inventories 1,743 2,177 (19.9)
Trade recievables 1,098 873 25.8
Cash & bank balance 4,808 3,098 55.2
Short term loans & advances 1,170 1,021 14.6
Other current assets 46 69 (32.7)
Total 13,523 11,296 19.7
Consumer Goods
6 Edelweiss Securities Limited
Financial snapshot (INR mn)
Year to March Q2FY13 Q2FY12 % Change Q1FY13 % Change FY12 FY13E FY14E
Net revenues 7,738 6,572 17.7 7,361 5.1 26,239 31,066 36,348
Other operating income 187 172 8.6 200 (6.8) 694 811 909
Total operating income 7,924 6,744 17.5 7,561 4.8 26,932 31,877 37,256
Cost of goods sold 3,238 2,637 22.8 2,997 8.0 10,502 12,448 14,466
Gross profit 4,686 4,108 14.1 4,564 2.7 16,430 19,429 22,790
Staff costs 543 605 (10.3) 624 (13.0) 2,156 2,454 2,871
Advt. sales & promotions 889 723 23.0 837 6.2 2,630 3,138 3,671
Other expenses 1,496 1,487 0.6 1,478 1.2 5,859 6,679 7,815
Total exp. (excl. cogs) 2,928 2,815 4.0 2,939 (0.4) 10,645 12,271 14,357
EBITDA 1,758 1,292 36.0 1,625 8.2 5,785 7,158 8,433
Depreciation 106 106 0.3 105 0.9 393 468 543
EBIT 1,652 1,187 39.2 1,520 8.7 5,392 6,690 7,890
Other income 149 108 37.4 112 32.5 507 603 618
EBIT including other income 1,801 1,295 39.0 1,632 10.3 5,899 7,293 8,507
Interest - 6 (100.0) - 15 18 22
Profit before tax 1,801 1,289 39.6 1,632 10.3 5,884 7,276 8,486
Provision for taxes 350 293 19.5 457 (23.5) 1,419 1,783 2,164
Core profit 1,451 997 45.5 1,174 23.5 4,465 5,493 6,322
Reported net income 1,451 997 45.5 1,174 23.5 4,465 5,493 6,322
Equity capital 136 136 136 136 136 136
No. of shares (mn) 136 136 136 136 136 136
Diluted EPS (INR) 10.7 7.3 45.5 8.6 23.5 32.8 40.4 46.5
As % of net revenues
COGS 40.9 39.1 39.6 39.0 39.1 38.8
Employee cost 6.9 9.0 8.3 8.0 7.7 7.7
Adv. & sales promotions 11.2 10.7 11.1 9.8 9.8 9.9
Other expenditure 18.9 22.0 19.5 21.8 21.0 21.0
EBITDA 22.2 19.2 21.5 21.5 22.5 22.6
EBIT incl. other income 22.7 19.2 21.6 21.9 22.9 22.8
PBT 22.7 19.1 21.6 21.8 22.8 22.8
Reported net profit 18.3 14.8 15.5 16.6 17.2 17.0
Tax rate 19.4 22.7 28.0 24.1 24.5 25.5
Colgate Palmolive
7 Edelweiss Securities Limited
Company Description
Colgate is India’s biggest oral care products company with more than 95% of its sales
coming from this product category. The company has products across variants and price
points in toothpaste, toothpowder, and toothbrushes, and is the leader in each of these
categories.
Investment Theme
Colgate is market leader in oral care category with ~54.5% market share in toothpaste
category and enjoys strong brand equity, built over the years through high investment on
creating consumer awareness and brand recall. Volume growth would also remain robust
riding rise in both penetration and per capita consumption. Also, new categories like
sensitive toothpaste and mouthwash will further enhance growth and premiumisation.
However, higher competition will induce Colgate to increase its brand spends, which could
cap its margins.
Key Risks
New entrants like P&G could hit the company hard.
Further risks arise from down trading by consumers due to the delayed monsoon, gloomy
macroeconomic environment and rising food inflation.
Deficient rainfall could impact agricultural activity, which in turn could hit rural demand.
Sharp rise in input prices or continued depreciation of the INR could increase cost of
imported chemicals.
8 Edelweiss Securities Limited
Consumer Goods
Financial Statements
Key Assumptions
Year to March FY10 FY11 FY12 FY13E FY14E
Macro - GDP(Y-o-Y %) 8.4 8.4 6.5 5.8 6.5
Inflation (Avg) 3.6 9.9 8.8 7.8 6.0
Repo rate (exit rate) 5.0 6.8 8.5 7.5 6.8
USD/INR (Avg) 47.4 45.6 47.9 53.5 52.0
Company - Volume growth (%) 14.7 9.4 12.0 10.5 10.4
Pricing change (%) 1.1 3.7 6.2 7.8 6.5
COGS as % of sales 38.2 38.1 39.0 39.1 38.8
A&P as % of sales 14.7 9.9 9.8 9.8 9.9
Income statement (INR mn)
Year to March FY10 FY11 FY12 FY13E FY14E
Net revenue 19,625 22,206 26,239 31,066 36,348
Other operating income 727 656 694 811 909
Total operating income 20,352 22,861 26,932 31,877 37,256
Materials costs 7,768 8,720 10,502 12,448 14,466
Gross profit 12,584 14,141 16,430 19,429 22,790
Employee costs 1,591 1,932 2,156 2,454 2,871
Other expenses 3,014 4,800 5,859 6,679 7,815
Advertisement & sales costs 2,994 2,264 2,630 3,138 3,671
EBITDA 4,985 5,146 5,785 7,158 8,433
Depreciation & Amortization 376 342 393 468 543
EBIT 4,609 4,803 5,392 6,690 7,890
Other income 254 412 507 603 618
Interest expenses 15 16 15 18 22
Profit before tax 4,848 5,199 5,884 7,276 8,486
Provision for tax 615 1,174 1,419 1,783 2,164
Net profit 4,232 4,026 4,465 5,493 6,322
Profit after minority interest 4,232 4,026 4,465 5,493 6,322
Diluted EPS (INR) 31.1 29.6 32.8 40.4 46.5
Dividend per share (INR) 20.0 20.0 23.9 29.1 33.5
Dividend payout (%) 64.3 67.5 72.9 72.0 72.0
Common size metrics - as % of net revenues
Year to March FY10 FY11 FY12 FY13E FY14E
Materials costs 38.2 38.1 39.0 39.1 38.8
Employee expenses 7.8 8.5 8.0 7.7 7.7
EBITDA margins 24.5 22.5 21.5 22.5 22.6
EBIT margins 22.6 21.0 20.0 21.0 21.2
Net profit margins 20.8 17.6 16.6 17.2 17.0
Growth ratios (%)
Year to March FY10 FY11 FY12 FY13E FY14E
Rev. growth (%) 15.8 12.3 17.8 18.4 16.9
EBITDA 90.5 3.2 12.4 23.7 17.8
Net profit 97.6 (4.9) 10.9 23.0 15.1
EPS growth (%) 97.6 (4.9) 10.9 23.0 15.1
9 Edelweiss Securities Limited
Colgate Palmolive
Balance sheet (INR mn)
As on 31st March FY10 FY11 FY12 FY13E FY14E
Equity capital 136 136 136 136 136
Reserves & surplus 3,125 3,705 4,218 4,894 5,672
Shareholders funds 3,261 3,841 4,354 5,030 5,808
Unsecured loans 46 1 1 - -
Borrowings 46 1 1 - -
Deferred tax liability (179) (168) (121) (121) (121)
Sources of funds 3,128 3,673 4,233 4,909 5,687
Gross block 5,345 5,798 6,132 7,432 8,082
Depreciation 2,876 3,248 3,587 4,055 4,598
Net block 2,469 2,550 2,544 3,376 3,483
Capital work in progress 62 82 694 80 60
Investments 210 387 471 471 471
Inventories 1,106 1,537 2,177 2,190 2,552
Sundry debtors 98 430 449 512 589
Cash and equivalents 3,476 3,956 3,102 4,245 5,426
Loans and advances 1,222 1,122 1,742 1,742 1,742
Total current assets 5,901 7,044 7,469 8,688 10,309
Sundry creditors and others 4,267 4,699 4,793 5,554 6,484
Provisions 1,248 1,693 2,153 2,153 2,153
Total current liabilities & provisions 5,515 6,392 6,945 7,707 8,637
Net current assets 387 653 524 981 1,672
Uses of funds 3,128 3,673 4,233 4,909 5,687
Book value per share (INR) 24.0 28.2 32.0 37.0 42.7
Free cash flow (INR mn)
Year to March FY10 FY11 FY12 FY13E FY14E
Net profit 4,232 4,026 4,465 5,493 6,322
Add : Non cash charge 391 359 408 485 565
Depreciation 376 342 393 468 543
Others 15 16 15 18 22
Gross cash flow 4,623 4,384 4,873 5,979 6,887
Less: Changes in WC (53) 331 565 (686) (491)
Operating cash flow 4,677 4,053 4,308 6,664 7,377
Less: Capex 1,093 453 333 686 630
Free cash flow 3,584 3,600 3,974 5,978 6,747
Cash flow metrics
Year to March FY10 FY11 FY12 FY13E FY14E
Operating cash flow 3,974 3,579 4,028 6,664 7,377
Investing cash flow 345 600 (102) (686) (630)
Financing cash flow (3,375) (3,230) (3,980) (4,835) (5,566)
Net cash flow 944 950 (55) 1,143 1,182
Capex (1,093) (453) (333) (686) (630)
Dividends paid (3,182) (3,168) (3,965) (4,817) (5,544)
10 Edelweiss Securities Limited
Consumer Goods
Profitability & efficiency ratios
Year to March FY10 FY11 FY12 FY13E FY14E
ROAE (%) 156.1 113.4 109.0 117.1 116.7
ROACE (%) 201.8 154.9 153.0 163.2 163.5
Inventory day 18 22 26 26 26
Debtors days 2 4 6 6 6
Payable days 98 92 82 82 82
Cash conversion cycle (days) (78) (66) (50) (50) (51)
Current ratio 1.1 1.1 1.1 1.1 1.2
Operating ratios
Year to March FY10 FY11 FY12 FY13E FY14E
Total asset turnover 7.9 6.7 6.8 7.0 7.0
Fixed asset turnover 9.7 9.1 10.6 10.8 10.9
Equity turnover 7.5 6.4 6.6 6.8 6.9
Valuation parameters
Year to March FY10 FY11 FY12 FY13E FY14E
Diluted EPS (INR) 31.1 29.6 32.8 40.4 46.5
Y-o-Y growth (%) 97.6 (4.9) 10.9 23.0 15.1
CEPS (INR) 33.9 32.1 35.7 43.8 50.5
Diluted PE (x) 39.8 41.8 37.7 30.6 26.6
Price/BV (x) 51.6 43.8 38.6 33.5 29.0
EV/Sales (x) 8.1 7.2 6.1 5.1 4.4
EV/EBITDA (x) 33.0 31.9 28.5 22.8 19.3
Dividend yield (%) 1.6 1.6 1.9 2.4 2.7
Peer comparison valuation
Company Market Mcap
Price (INR) (INR bn) FY13E FY14E FY13E FY14E FY13E FY14E
Consumer Goods
Asian Paints 3,932 377 32.8 27.1 21.0 17.3 38.2 38.9
Colgate 1,237 168 30.6 26.6 22.8 19.3 117.1 116.7
Dabur 125 218 28.9 24.2 20.4 17.1 40.7 38.4
Emami 575 87 29.0 23.6 24.0 19.7 40.3 43.7
GSK Consumer* 3,012 127 30.8 26.5 19.9 16.9 33.9 33.0
Godrej Consumer 715 243 31.8 26.4 23.0 19.0 22.9 23.6
Hindustan Unilever 546 1181 35.5 30.8 27.1 23.1 78.5 70.9
ITC 288 2267 29.8 25.4 19.2 16.3 37.5 39.6
Marico 207 133 32.2 26.8 21.3 17.5 30.3 28.5
Nestle* 4,673 451 40.0 32.9 25.4 20.6 74.7 67.4
United Spirits 1,095 143 43.7 31.5 17.0 14.8 6.6 8.6
Consumer Goods - Mean 33.2 27.4 21.9 18.3 47.3 46.3
Consumer Goods - Mean (market cap wtd average) 32.6 27.6 22.0 18.5 50.5 49.2
Consumer Goods - Mean (ex-Nestle) 32.5x 26.9x 21.6x 18.1x 44.6 44.2
* CY numbers Source: Edelweiss research
P/E (x) EV/EBITDA(x) ROE (%)
11 Edelweiss Securities Limited
Company Absolute
reco
Relative
reco
Relative
risk
Company Absolute
reco
Relative
reco
Relative
Risk
Asian Paints BUY SP M Colgate HOLD SP M
Dabur BUY SO M Emami BUY SP H
GlaxoSmithKline Consumer Healthcare BUY SP M Godrej Consumer BUY SO H
Hindustan Unilever HOLD SP L ITC BUY SO L
Marico BUY SO M Nestle Ltd HOLD SP L
United Spirits HOLD SU H
RATING & INTERPRETATION
ABSOLUTE RATING
Ratings Expected absolute returns over 12 months
Buy More than 15%
Hold Between 15% and - 5%
Reduce Less than -5%
RELATIVE RETURNS RATING
Ratings Criteria
Sector Outperformer (SO) Stock return > 1.25 x Sector return
Sector Performer (SP) Stock return > 0.75 x Sector return
Stock return < 1.25 x Sector return
Sector Underperformer (SU) Stock return < 0.75 x Sector return
Sector return is market cap weighted average return for the coverage universe
within the sector
RELATIVE RISK RATING
Ratings Criteria
Low (L) Bottom 1/3rd percentile in the sector
Medium (M) Middle 1/3rd percentile in the sector
High (H) Top 1/3rd percentile in the sector
Risk ratings are based on Edelweiss risk model
SECTOR RATING
Ratings Criteria
Overweight (OW) Sector return > 1.25 x Nifty return
Equalweight (EW) Sector return > 0.75 x Nifty return
Sector return < 1.25 x Nifty return
Underweight (UW) Sector return < 0.75 x Nifty return
12 Edelweiss Securities Limited
Consumer Goods
Edelweiss Securities Limited, Edelweiss House, off C.S.T. Road, Kalina, Mumbai – 400 098.
Board: (91-22) 4009 4400, Email: [email protected]
Vikas Khemani Head Institutional Equities [email protected] +91 22 2286 4206
Nischal Maheshwari Co-Head Institutional Equities & Head Research [email protected] +91 22 4063 5476
Nirav Sheth Head Sales [email protected] +91 22 4040 7499
Coverage group(s) of stocks by primary analyst(s): Consumer Goods
Asian Paints, Colgate, Dabur, Godrej Consumer , Emami, Hindustan Unilever, ITC, Marico, Nestle Ltd, GlaxoSmithKline Consumer Healthcare, United Spirits
Distribution of Ratings / Market Cap
Edelweiss Research Coverage Universe
Rating Distribution* 113 53 19 186
* 1 stocks under review
Market Cap (INR) 114 58 14
Date Company Title Price (INR) Recos
Recent Research
29-Oct-12 Asian
Paints
Volumes recover; margins to
follow; Result Update
3,923 Buy
26-Oct-12 Hindustan
Unilever
Core story intact; wait for
better entry point;
Result Update
552 Hold
26-Oct-12 Dabur Healthy and Juicy;
Result Update
130 Buy
> 50bn Between 10bn and 50 bn < 10bn
Buy Hold Reduce Total
Rating Interpretation
Buy appreciate more than 15% over a 12-month period
Hold appreciate up to 15% over a 12-month period
Reduce depreciate more than 5% over a 12-month period
Rating Expected to
13 Edelweiss Securities Limited
Colgate Palmolive
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