Rs 22/Share Dividend: PL Assigns Hold Rating To FMCG Stock As Net Surges 22%

Leading brokerage firm Prabhudas Lilladher has recommended hold call to large cap FMCG sector stock, Colgate-Palmolive (India) Ltd with target price of Rs 1948. Current market price of Colgate-Palmolive (India) share on BSE is Rs 2021.60 per share with intraday fall of 0.54%. Colgate-Palmolive shares declined nearly 3.86% in last 1-week as Sensex too fell for 6 consecutive sessions. BSE Sensex witnessed gain of 575 points till 11:43 am to 63,723. Colgate-Palmolive stock surged 33% year-to-date and 25% in last 1-year. Check details below:

Colgate-Palmolive Financial Results: Earlier on October 26, 2023, Colgate-Palmolive (India) Ltd declared a rise of 22.31% in its consolidated net profit to Rs 340.05 crore for Q2 of FY 2023-24 from Rs 278.02 crore an year ago. It announced a surge of 6.09% YoY (year-on-year) in its consolidated revenue from operations to Rs 1462.38 crore as compared to Rs 1378.37 crore in the preceding fiscal. Colgate's EBITDA (earnings before interest, tax, depreciation and amortization) for the quarter under consideration came at Rs 482.2 crore as against Rs 408 crore in the year ago period. EBITDA margin of the company came at 32.8% as compared to 29.4% IN Q2 FY23.

PL Recommends Hold Call: Amnish Aggarwal - Head of Research, Prabhudas Lilladher Pvt Ltd said, "While resilient urban demand, low base and benign inputs will enable strong growth in FY24, sustaining double digit PAT growth beyond FY24 looks challenging but for significant pick up in rural demand. We estimate 8.0% sales and 11% PAT CAGR over FY23-26. We value CLGT at 38x Sep'25 EPS and assign a target of Rs1948 (Rs1869 earlier). Re-rating potential seems capped post recent run up in stock price. Retain Hold."

Colgate-Palmolive (India) Ltd Announces Interim Dividend: Colgate announced its highest ever dividend of Rs 22/- per equity share of the FV of Re 1 for FY 2023-24. It stated in its exchange filing dated Oct 26, "Declaration of First Interim Dividend of Rs. 22/- (Rupees Twenty Two Only) per equity share of face value of Re.1/- for the Financial Year 2023-24. The said interim dividend will be paid on and from November 21, 2023 to those shareholders whose names appear in the Register of Members/Beneficial Owners of the Company as on the Record date i.e. November 06, 2023."

Colgate-Palmolive Dividend History: The company declared 60 dividends since July 25, 2001. In the past 12 months, Colgate-Palmolive (India) Ltd. has declared an equity dividend amounting to Rs 39.00 per share. At the current share price of Rs 2040.95, this results in a dividend yield of 1.92%. Last dividend that the company announced was Rs 21 per equity share and ex-dividend date was May 19, 2023.

Colgate-Palmolive Stock Outlook & Return: Current market price of Colgate-Palmolive share on BSE is Rs 2029.85 per share with intraday fall of 0.13% at 11:53 am. Its 52-week high price is Rs 2128.85 per share and 52-week low price is Rs 1434.60 apiece, respectively. The company's market cap is Rs 55,209.00 crore. Colgate-Palmolive shares soared 28% in last 6-months, gained 25% in last 1-year, and surged 85% in last 5-years.

About: Colgate-Palmolive manufactures and distributes consumer products. The company operates via personal, oral, home care and pet nutrition segments. The small soap and candle business that William Colgate began in New York City early in the 19th century is now, more than 200 years later, a global company serving hundreds of millions of consumers worldwide.

Disclaimer

The stock has been picked from the brokerage report of Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.