Colgate Palmolive Stock Can be added in Portfolio in recent Market declines
After looking at recommendation of buying BHEL stock for your portfolio, this is one more recommendation. Investors can use recent market declines to add the Colgate Palmolive India stock to their portfolio. Strong rural off-take for FMCG products and Colgate’s expanding market shares in oral care suggest that the company could sustain strong topline growth over the next 2-3 years.
Colgate’s profit growth may out-pace sales growth, as it widens its product mix and lowers tax incidence by shifting more of its production to tax-free zones. At the current market price, the stock trades at about 19 times its expected earnings for 2008-09 and about 16 times expected earnings for 2009-10, at par with FMCG peers. The company’s strong cash coffers, rising dividends and high dividend yield also make the stock a good defensive pick in a volatile market.
Colgate Palmolive India, which holds a 49.2 per cent market share in toothpastes and a 35.2 per cent share in toothbrushes, is the dominant player in the Indian oral care market. Oral care products have seen strong volume growth over the past year, driven by consumer upgrading (from toothpowder to paste) and strong rural offtake.
*To get the password for buy calls, please subscribe to this blog. You will receive the password in next email to you*If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Comments
No comments yet.
Leave a comment