Multibagger Stock – Colgate-Palmolive (India) Ltd.

Multibagger Stock - Colgate-Palmolive (India) LtdColpal:

  • Colgate-Palmolive (India) Ltd was incorporated in the year 1937. In the year 1983, the company introduced their successful product Colgate Plus toothbrush in the market. In the year 1988, CPIL received a license for producing 24,000 tonnes per annum of fatty acids.
  • They also registered with DGTD for production of 30,000 tonnes of toilet soap per annum. In June 1988, the company established a wholly owned subsidiary at Hetanda in Nepal to manufacture the toothpaste and tooth powder initially.
  • In the year 1991, the company launched new Colgate Gel Toothpaste, Palmolive Extra Care and new Palmolive soap. They also re-launched a high quality Colgate Plus and other toothbrushes.
  • In the year 1994, the company acquired the oral hygiene business of Hindustan Ciba-Geigy Ltd.
  • In the year 1996, the company introduced the Colgate fresh stripe toothpaste and Palmolive naturals soap in personal care products segments, Keratin Treatment Shampoo and Palmolive optima in Hair care segment. Also, they established a modern facility at Aurangabad to manufacture Dicalcium phosphate, a key ingredient for toothpaste.
  • In the year 1998, the company launched Colgate Double Protection toothpaste for the entire family.
  • They launched the ad campaign for their new product Colgate Double Protection toothpaste in competition with rival brand Pepsodent from the Hindustan Lever stable. In the year 1999
  • In the year 2000, the company introduced two new variants to their Palmolive Naturals soap range and revitalised their sandalwood soap. Also, they launched two new variants in their Palmolive Naturals range of beauty soap lime and milk cream. The company re-launched their Colgate Gel as Colgate Fresh Energy Gel. During the year
  • During the year 2000-01, the company launched Colgate Herbal Toothpaste, Economy Toothpaste, Colgate Zig Zag Toothbrush, Colgate Navigator Toothbrush and Transparent Skin Care Soap in the year market
  • During the year 2001-02, the company re-launched Colgate Fresh Energy Gel with a refreshing falvour in a unique first-of-its king transparent tube and economy toothpaste
  • During the year 2003-04, the company launched Colgate Herbal White striped toothpaste with lemon extracts, eucalyptus and mint. They launched Colgate Navigator Plus Toothbrush in the market.
  • During the year 2004-05, the company established a state-of-the-art additional toothpaste manufacturing facility at Baddi, Himachal Pradesh to meet the growing market demand. The first phase of the facility became operational in April, 2005
  • During the year 2005-06, the company established Oral Care Category Innovation Centre works closely with the Technology Centres in India and U.S.A. to shape ideas into products that meet today’s consumer needs. They launched Colgate Advanced Whitening, Colgate Active Salt, Colgate MaxFresh Gel and Colgate Super Flexible Toothbrush with Unique Tongue Cleaning Feature
  • During the year 2009-10, the company acquired the remaining 25% shareholdings in Professional Oral Care Products Pvt Ltd and CC Health Care Products Pvt Ltd at a total consideration of Rs 2.40 crore and Rs 69.07 lakh respectively
  • In June 2011, Essel Propack Ltd signed a long-term agreement with the company to set up a plant in Goa at an investment of Rs 400 million.
  • The toothpaste volume market share has increased to 54.3% (Jan’12 – Sept’12) as against 52.3% for the same period of the previous year with strong volume growth of 11% through its flagship brands “Colgate Dental Cream”, “Colgate Active Salt”, “Colgate Total” , “Colgate Max Fresh”, its highest since 1998, a rare instance of a market leader gaining new ground. The Company has also registered a strong growth momentum in the toothbrush category with volume market share of 39.0% (Jan’12-Sept’12) The Mouthwash category continues its growth momentum with market share at 26.8% (Jan’12-Sept’12)
  • The Company has posted the revenue for the Q2FY13 at Rs.773.77 crore. The YoY growth is 17.73% and the QoQ growth is 5.12%. However, growth in underlying volumes has moderated from an average 13 per cent in the earlier quarters to 11 per cent in the Q1FY13. Colgate-Palmolive (India) net profit rose 45.55% to Rs 145.08 crore in the Q2FY13 as against Rs 99.68 crore during the Q2FY12. Operating margin is at 22.18% as against Q1 and 302bps up as compared to Q2 of last year.
  • Presently Colgate stock trading is at a valuation of 37.37x and 32.78x of FY13EPS of Rs.40.33 and FY14EPS of Rs.45.97. We Bet to buy Share at 1540 for Target 1800 in a time period 9-12 Months.