Colgate-Palmolive India falls after Kotak flags earnings concerns

Colgate-Palmolive (India)

09/01/2024 06:34

** Shares of Colgate-Palmolive India  COLG.NS  fall as much
as 2.42% to 2,440.10 rupees apiece
    ** Toothpaste maker is top loser in consumer goods index
 .NIFTYFMCG , which is up 0.25%
    ** Kotak Institutional Equities downgrades COLG to "reduce"
from "add", citing potential moderation in EPS growth to
high-single digits from 20%+ growth in FY 2024
    ** Kotak expects COLG's earnings to underperform consumer
goods industry on volume growth, and weakness in rural demand
could weigh on earnings
    ** Raises TP to 2,325 rupees from 2,075 rupees earlier to
account for recent rise in COLG's shares
    ** TP implies a downside of 7.03% over next 12 months from
last close - LSEG data
    ** COLG shares rose ~65% in 2023, more than double the 29%
rise in consumer goods index  .NIFTYFMCG 
    ** Mean rating of 30 analysts tracking COLG is equivalent to
"hold"; median PT is 2,020 rupees

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))