Colgate-Palmolive India shares gain 3% after Q2 results, dividend announcement; should you buy, sell or hold?

Colgate Palmolive India share price, Colgate Palmolive India share price target, Colgate Palmolive India dividend, Colgate Palmolive India Q2 results: Colgate-Palmolive India shares on Friday finished 2.24 per cent or Rs 45.55 higher at Rs 2,079.95 on NSE after the FMCG company reported its financial results for the July- September period and announced an interim dividend. After a volatile trade, the Colgate-Palmolive stock gained as much as nearly 3 per cent to Rs 2,090 apiece on NSE. After market hours on Thursday, the company reported a 22.31 per cent year-on-year increase in net profit to Rs 340.1 crore for the quarter ended September 30, driven by pricing and efficiencies. Its quarterly sales grew 6.1 per cent to Rs 1,462.4 crore, according to a regulatory filing. Read more on Colgate-Palmolive Q2 results 

EDITOR'S TAKE | Revenue growth below expectations 

Zee Business Managing Editor Anil Singhvi pointed out that the company's revenue growth was below expectations though operational performance was in line with estimates. No volume growth is a big concern, he added. 

Here's how the counter moved on Friday: 

Source: NSE

Colgate-Palmolive India share price target—should you buy, sell or hold? 

CLSA maintained a 'sell' call on Colgate-Palmolive as well as its target price, at Rs 1,932, after the earnings announcement. According to the brokerage, the company reported subdued volume trend, with nearly flat volumes on a year-on-year basis, but its pricing power allowed respectable revenue growth and its smart margin expansion drove 18 per cent year-on-year growth in EBITDA.

There is a slight beat across metrics but a decelerating top line, according to CLSA, which also highlighted that Colgate-Palmolive’s EBITDA margin expanded by 337 bps on a year-on-year basis driven by pricing and higher efficiency. Key factors driving beat were relaunches of key brands with increased reach and availability, the brokerage added. 

Colgate-Palmolive dividend 2023

Colgate-Palmolive India declared a dividend of Rs 22 per share, its first interim dividend for the financial year. That translated into a 2,200 per cent payout given the face value of Re 1 per share. 

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