Neutral Colgate Palmolive India target Rs 900: Credit Suisse
Credit Suisse maintains neutral rating on Colgate PalmoliveBSE -0.28 % India Ltd post March quarter results but slashed its 12-month target price to Rs 900 from Rs 930 earlier.
The volume growth saw a decent recovery after few quarters of slowing trends. The slowdown had been direct consequence of the rapid growth of Patanjali in toothpaste.
Pickup in growth is a positive surprise and management appeared confident of sustaining recovery. With Patanjali planning major expansion in FY17, risk of further share loss is high.
While volume growth stabilising, the global investment bank remains concerned due to disruptive pressure from Patanjali. It slashed EPS estimates by 8 per cent to factor in the impact.