Buy Colgate, target of Rs 570: Hem Securities

by admin on April 15, 2009

Hem Securities has recommended a buy rating on Colgate Palmolive (India) with target price of Rs 570 in its April 14, 2009 research report.

“Colgate Palmolive India, a leader in the tooth paste segment, has increased the prices of some its product by around 4 per cent, where as other consumer goods makers such as Hindustan Unilever Limited and Procter and Gamble are cutting prices of their products.”“With inflation at the lowest level, raw material prices cooling off and excise duty cut has help FMCG companies to maintain its margin. Colgate Palmolive India Limited is a market leader in Oral Care segment. We are very positive on the long term business prospects of the company and financial performance. We reiterate “BUY” on the stock with target price of Rs 570 with a medium term investment horizon,” says Hem Securities’ research report.

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