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Colgate-Palmolive (India) Ltd Stock Analysis

Large Cap
Evaluated by 6320 users | BSE: 500830 | NSE: COLPAL |
Household & Personal Products

Colgate-Palmolive is a leading global consumer products company with large people dedicated to improving the health and wellness of people and their pets. Focused on Oral Care, Personal Care, Home Care and Pet Nutrition and reaching more than 200 countries...

1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Colgate-Palmolive (India) Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 112.9%109.68%107.65%91%81.76%67.21%50%48.77%49.5%52.63%
Value Creation Index 11.5011.0110.778.957.946.354.464.334.504.85
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,2862,6933,1643,5793,9823,8683,9824,1884,4624,525
Y-o-Y Gr. Rt.-17.8%17.5%13.1%11.3%-2.9%2.9%5.2%6.6%1.4%
Adjusted EPS (Rs.) 14.7916.4818.3118.2320.5922.2621.1825.0927.7329.98
Y-o-Y Gr. Rt.-11.4%11.1%-0.4%13%8.1%-4.9%18.5%10.5%8.1%
Book Value per Share (Rs.) 14.1216.011822.0628.3237.4946.6355.8453.0558.64
Adjusted Net Profit 402448498496560605576682754815
Net Op. Cash Flow (Rs. Cr.) 358403615457638689688694983890
Debt to Cash Flow from Ops 000000000.080
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Colgate-Palmolive (India) Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 7.9%2.6%4.4%1.4%
Adjusted EPS 8.2%7.8%12.3%8.1%
Book Value per Share 17.115.77.910.5
Share Price 13.3% 11.5% 9.6% 2.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 113.32109.43107.669181.7667.215048.7750.7653.63
Operating Profit Margin (%) 22.5121.5920.8218.5920.6924.3523.726.6227.726.56
Net Profit Margin (%) 17.616.6515.7413.8514.0715.6514.4716.2916.918.02
Debt to Equity 000000000.060
Working Capital Days 103113116121127146169210236260
Cash Conversion Cycle -52-31-32-36-34-38-38-38-34-30
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 51.00%
Institutions 26.98%
Non-Institutions 22.02%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Colgate-Palmolive (India) Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Colgate-Palmolive (India) Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Colgate-Palmolive (India) Ltd's performance infers:

Colgate-Palmolive (India) Ltd earnings have grown by 7.8%, whereas share price has appreciated 11.5% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Colgate-Palmolive (India) Ltd share prices over the last 10 years. Here is what we found out:

Colgate-Palmolive (India) Ltd share price has appreciated 13.7% annually over the past ten years.

Colgate-Palmolive is a leading global consumer products company with large people dedicated to improving the health and wellness of people and their pets. Focused on Oral Care, Personal Care, Home Care and Pet Nutrition and reaching more than 200 countries and territories, Colgate teams are developing, producing, distributing and selling health and hygiene products and pet nutrition offerings essential to society through brands such as Colgate, Palmolive,

Colgate-Palmolive is a leading global consumer products company with large people dedicated to improving the health and wellness of people and their pets. Focused on Oral Care, Personal Care, Home Care and Pet Nutrition and reaching more than 200 countries and territories, Colgate teams are developing, producing, distributing and selling health and hygiene products and pet nutrition offerings essential to society through brands such as Colgate, Palmolive, elmex, Tom’s of Maine, hello, Sorriso, Speed Stick, Softsoap, Irish Spring, Protex, Sanex, Filorga, eltaMD, PCA Skin, Ajax, Axion, Fabuloso, Soupline and Suavitel, as well as Hill’s Science Diet and Hill’s Prescription Diet.

The Company also is recognized for its leadership and innovation in promoting environmental sustainability and community wellbeing, including its achievements in saving water, reducing waste, promoting recyclability and improving the oral health of children through its Bright Smiles, Bright Futures program, which has reached more than one billion children since 1991.

Business area of the company

Colgate-Palmolive (India) Ltd is the fastest growing and one of the oldest company catering to the personal care products. The product range of the company can be broadly classified into Oral care-Under this segment the company offers product like toothpastes, toothbrush, tooth powder & tooth whitening products,Personal care -In this segment it offer products skin care, hair care ,body wash, & shaving creams,Household care-Under this segment it has launched brand AXIOM-a dish washing paste.The company has launched a new lineof products for the Dentists - under which it provides products like Gingivitis Treatment, Colgate Sensitive treatment, Tooth Whitening, Fluoride Therapy, Mouth Ulcer Treatment & Specialty Cleaning. 

Awards

2019:

  • Top 50 Companies for Diversity by DiversityInc
  • 2019 Top 50 Employers, Reader’s Choice by Careers and the disABLED Magazine
  • America's Most Responsible Companies by Newsweek
  • World's Most Ethical Company by Ethisphere
  • 2019 Top Companies for Executive Women by NAFE
  • World’s Most Reputable Companies for Corporate Responsibility by Forbes
  • Distinguished Performance:Best Employer for Promoting Asian Pacific Americans into Leadership Positions by Asia Society
  • 2019 Energy Star Partner of the Year - Sustained Excellence by Energy Star EPA
  • Top 50 Employer by Equal Opportunity Magazine
  • 100 Most Sustainable US Companies by Barron's
  • India's Most Trusted Oral Care Brand by Economic Times Brand Equity
  • 50 Best Companies for Latinas to Work by LATINA Style
  • Kantar Top Brand by Kantar Worldpanel
  • 2019 Working Mother Best Company for Multicultural Women by Working Mother
  • World's Best Regarded Companies by Forbes
  • Dow Jones Sustainability Indicies by S&P Dow Jones
  • 2019 Supply Chain Top 25 by Gartner
  • Top Companies for Diversity and Top Companies for Philanthropy by DiversityInc
  • World's Most Admired Companies by Fortune Magazine
  • Working Mother 100 Best Companies by Working Mother Magazine
  • 100 Best Corporate Citizens by CR Magazine
  • #1 Most Reputable Company in the Dominican Republic by Newlink and Reputation Institute
  • 2019 Green Power Partnership National Top 100 by EPA
  • America's Most Reputable Companies by Forbe's Magazine and the Reputation Institute
  • Best Places to Work for Disability Inclusion by Disability: IN and American Association of People with Disabilities (AAPD)
  • 2019 Best Companies to Work for Millenials, Women, and Multicultural Women by Women’s Choice Award
  • #1 Coolest Toothpaste Brand in South Africa by HDI Youth Consultancy
  • Leadership Award by US Green Building Council
  • Management Top 250 by Wall Street Journal
  • #1 Most Trusted Oral Care Brand in India by TRA Brand Trust

2020:

  • U.S. EPA by ENERGY STAR Partner of the Year Award for Sustained Excellence
  • Supply Chain Top 25 by Gartner, Inc.
  • 100 Best Corporate Citizens by CSR Magazine
  • Founders Award by LATINA Style Inc
  • Most Trusted Brands by The Economic Times Brand Equity
  • Global RepTrak 100 Survey by Reputation Institute
  • Top 100 Most Valuable US Brands by BrandZ
  • World's Most Admired Companies by Fortune Magazine
  • Top Company for Executive Women by National Association for Female Executives (NAFE)
  • Top 100 Most Powerful Brands by Tenet Partners
  • 'Change the World' List by Fortune
  • Top 50 Most Loved Brands in America by Morning Consult
  • World's Best Employers by Forbes
  • Social Impact of the Year Award (Supply Chain) by Gartner
  • America's Most JUST Companies by JUST Capital & Forbes
  • Most Trusted Brands by Category (Palmolive) by Gustavson Brand Trust
  • World's Most Valuable Brands by Forbes
  • World's Most Ethical Company by Ethisphere
  • 50 Best Companies for Latinas to Work by LATINA Style Inc
  • America's Best Employers By State by Forbes & Statista
  • Best Places to Work for Disability Inclusion by Disability Equality Index
  • Corporate Equality Index by Human Rights Campaign
  • 100 Best Companies for Moms by Working Mother
  • 100 Best Companies for Dads by Working Mother
  • Best New Product Award - Palmolive Pure + Clear Canada by Brand Spark International

Milestones

  • 1806: William Colgate starts a starch, soap and candle business on Dutch Street in New York City.
  • 1817: First Colgate advertisement appears in a New York newspaper.
  • 1820: Colgate establishes a starch factory in Jersey City, New Jersey.
  • 1857: Upon the death of founder William Colgate, the company is reorganized as Colgate & Company under the management of Samuel Colgate, his son.
  • 1864: B.J. Johnson opens a soap factory in Milwaukee, WI, which later becomes the Palmolive Company.
  • 1866: Colgate introduces perfumed soap and perfumes/essences
  • 1872: Peet brothers establish Soap Company in Kansas City, Kansas where they make Crystal White soap Cashmere Bouquet, the first milled perfumed toilet soap, is registered as a Colgate trademark.
  • 1873: Colgate aromatic toothpaste in jars.
  • 1879: Gerhard Mennen establishes a pharmacy in Newark, NJ, later becoming the Mennen Company.
  • 1896: Colgate introduces toothpaste in a collapsible tube.
  • 1898: BJ Johnson Soap Co. introduces Palmolive Soap. Today, the Palmolive equity is sold in over 88 countries in 54 variants.
  • 1900: Colgate wins top honors for its fine soaps and perfumes at the World’s Fair in Paris.
  • 1902: Stylish Palmolive advertising begins, emphasizing ingredient purity and product benefits.
  • 1906: Colgate & Company celebrates its 100th anniversary. Product line includes over 800 different products.
  • 1908: Colgate is incorporated by the five sons of Samuel Colgate. Ribbon opening added to Colgate tube: “the company couldn't improve the product so it improved the tube.”
  • 1911: Colgate distributes two million tubes of toothpaste and toothbrushes to schools, and provides hygienists to demonstrate tooth brushing.
  • 1812: William Mennen introduces the first American shaving cream tube.
  • 1914: Colgate merges with Palmolive-Peet to become Colgate-Palmolive-Peet Company.
  • 1926: Soap manufacturers Palmolive and Peet merge to become Palmolive-Peet Company.
  • 1930: On March 13, Colgate is first listed on the New York Stock Exchange.
  • 1939: Dr. Mark L. Morris develops a pet food to help save a guide dog named Buddy from kidney disease. This breakthrough leads to the first Hill's Prescription Diet product.
  • 1947: Ajax cleanser is launched, establishing a powerful now-global brand equity for cleaning products.
  • 1953: Colgate-Palmolive Company becomes company's official name.
  • 1956: Colgate opens corporate headquarters at 300 Park Avenue in New York City.
  • 1962: Colgate opens research center in Piscataway, NJ.
  • 1966: Palmolive dishwashing liquid is introduced and today it is sold in over 35 countries.
  • 1968: Colgate toothpaste adds MFP Fluoride, clinically proven to reduce cavities.
  • 1970: Irish Spring launches in Germany as Irische Frühling and in Europe as Nordic Spring. In 1972, Irish Spring is introduced in North America.
  • 1972: Colgate acquires Hoyt Laboratories, which later becomes Colgate Oral Pharmaceuticals.
  • 1975: Caprice hair care launches in Mexico. Today, hair care products are sold in over 70 countries, with variants to suit every type of hair need.
  • 1976: Colgate-Palmolive acquires Hill's Pet Nutrition. Today Hill's is the global leader in pet nutrition and veterinary recommendations.
  • 1983: Colgate Plus toothbrush is introduced. Today over 1.6 billion Colgate toothbrushes are sold annually worldwide. If you lined them up end to end, they would circle the globe 16 times.
  • 1985: Protex bar soap is introduced, and today offers all-family antibacterial protection in over 56 countries.
  • 1986: The Chairman's You Can Make a Difference Program is launched, recognizing innovation and executional excellence by Colgate people.
  • 1987: Colgate acquires Softsoap liquid soap business from the Minnetonka Corporation. Today, Colgate is the global leader in liquid hand soap.
  • 1989: Annual Company sales surpass the $5 billion mark.
  • 1991: Colgate acquires Murphy Oil Soap, the leading wood cleaner in the U.S. Today, its product portfolio has expanded to include all-purpose cleaners, sprays and wipes.
  • 1992: Colgate acquires the Mennen Company. Today, Mennen products are sold in over 52 countries. Colgate Total toothpaste introduced.
  • 1995: Colgate enters Central Europe and Russia, expanding into fast-growing markets. Colgate acquires Kolynos Oral Care business in Latin America and launches market-leading Sorriso toothpaste.
  • 1996: Bright Smiles, Bright Futures oral health education program expands to 50 countries, and today reaches over 50 million children annually.
  • 1997: Colgate Total toothpaste is introduced in the U.S. and quickly becomes the market leader. Only Colgate Total, with its 12-hour protection, fights a complete range of oral health problems.
  • 2004: Colgate acquires the GABA oral care business in Europe, with its strength in the important European pharmacy channel and its ties with the dental community.
  • 2006: Colgate enters the fast-growing Naturals segment by purchasing Tom’s of Maine, a leader in that market in the United States.
  • 2011: Colgate acquires the Sanex personal care brand in Europe.
  • 2013: Hill’s enters the Naturals segment with the launch of Hill’s Ideal Balance.
  • 2014: Colgate refurbishes the historic “Colgate Clock,” a landmark in Jersey City, New Jersey.
  • 2016: Colgate Bright Smiles, Bright Futures celebrates 25 years of creating bright smiles. Since 1991, the program has reached more than 850 million children in 80 countries, with a goal of reaching 1.3 billion by 2020.
  • 2017: Colgate partners with the Mexican Dental Association Foundation to support passage of a new law requiring oral hygiene regimen during each school day for every child enrolled in a public primary school in Mexico City.
  • 2018: Colgate Bright Smiles, Bright Futures celebrates 1 Billion children reached since 1991. Colgate acquires professional skin care brands PCA Skin and EltaMD, advancing Colgate’s presence in the premium global skin care category.
  • 2019: Colgate launches first-of-its-kind recyclable toothpaste tube and acquires premium, anti-aging skin care brand Filorga. Colgate Total toothpaste and Hill's Science Diet relaunched.
  • 2020: Colgate acquires Hello Products LLC, and Colgate responds to COVID-19 pandemic by donating 25 million bars of #SafeHands soap along with $20 million in health and hygiene products and pet food.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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