Buy Colgate Palmolive India Ltd. (CPIL)

Target Price :-Rs703
CM Price:-Rs612.00

Market Leader in Indian Oral Care Market

Company Background: Colgate Palmolive (India) Ltd. (CPIL), a 51% subsidiary of Colgate Palmolive Company, USA is a leading player in the Indian oral care industry. CPIL enjoys leadership position in the Indian oral care space with 52.3% market share in toothpaste market, 48.8% in toothpowder and 38.2% in toothbrush market (in value terms). A well concentrated, focused business model is a key to the growth of the company. Almost 90-95% of the revenue comes from the oral care segment with balance coming from the personal care & household care segment.

Hold Indian IT Services

Strong CY10 Budgets Likely: Raise Wipro to Buy, Lower Infy to Hold

• “Pent up” demand in play? — With most US and global macro data points suggesting stability or recovery, India’s IT services sector is seeing increased deal discussions and the start of ramp-ups. If the economic climate remains stable over the next few months, IT budgets could be strong in CY10E. Note that IT spends increased by an ~8% CAGR over the 3 years post the previous downturn.