Colgate-Palmolive (India) jumps on brokerage upgrade

Colgate-Palmolive (India) rose 3.39% to Rs 1,656.40 at 13:25 IST on BSE after a foreign brokerage reportedly upgraded the stock to 'outperform' from 'underperform.'

Meanwhile, the BSE Sensex was down 156.96 points, or 0.59%, to 26,659.60.

On BSE, so far 29,000 shares were traded in the counter, compared with an average volume of 28,949 shares in the past one quarter.

The stock hit a high of Rs 1,680 and a low of Rs 1,610.05 so far during the day. The stock hit a record high of Rs 1,698 on 25 July 2014. The stock hit a 52-week low of Rs 1,201 on 16 September 2013.

The stock had outperformed the market over the past one month till 15 September 2014, rising 10.57% compared with 2.73% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 5.72% as against Sensex's 6.30% rise.

The large-cap company has an equity capital of Rs 13.60 crore. Face value per share is Re 1.

The brokerage reportedly said that consumer goods sector is seeing improving consumption growth, easing input costs and benign competition. Colgate-Palmolive (India) would benefit as competitive risk from Procter & Gamble Hygiene and Health Care has abated, it added.

Colgate-Palmolive (India)'s net profit excluding exceptional item rose 4% to Rs 134.90 crore on 13% growth in net sales to Rs 950.60 crore in Q1 June 2014 over Q1 June 2013.

There was an exceptional gain in Q1 June 2013 relating to the slump sale of Global Shared Services Organisation to Colgate Global Business Services, a 100% subsidiary of Colgate-Palmolive Company.

Colgate-Palmolive (India) is India's leading provider of scientifically proven oral care products with multiple benefits at various price points. The range includes toothpastes, toothpowder, toothbrushes and mouthwashes under the "Colgate" brand, as well as a specialized range of dental therapies under the banner of Colgate Oral Pharmaceuticals. These have become an essential part of daily oral hygiene and therapeutic oral care in India. The Company also provides a range of personal care products under the 'Palmolive' brand name.

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