FMCG Sector
Important Note - Still Indian Markets are directionless and indecisive due to which any further market correction may bring some more pressure on all researched stocks mentioned in following sub-sections.
The market volatility situation is for short term duration and in long term the markets will recover as Indian companies are having good fundamentals and good growth prospects.
Colgate - Palmolive
Returns
CMP - Rs.369
Buying price - Buy near Rs.300, if possible below Rs.300.
Returns - above 30% in next 2 to 3 years.
About company
Colgate-Palmolive (Colgate) stronghold in the personal care business, primarily in the oral care business, which accounts for 90 per cent of its turnover, improving market shares and financials, a healthy dividend yield and importantly, good growth prospects make it a good investment. These attributes will not only provide stability to the portfolio, but will also ensure healthy growth in the long-term.
Products - Colgate Active salt, Colgate max fresh and Colgate Cibaca.
Latest Updates (06 Dec 2008)
Colgate Palmolive declares interim dividend
Colgate Palmolive India has declared an interim dividend of Rs.9 per equity share of Re 1 for the financial year ending March 31, 2009. The said interim dividend will be paid on the paid-up equity share capital of Rs.13.6 crore involving a total pay out of Rs.143.2 crore.
1st interim dividend of Rs.9.00 per equity share
Ex-date - 12th Dec 2008
Record date - 15th Dec 2008
(Researched date - Oct 2008)
Godrej Consumer Products Ltd
Returns
CMP - Rs.96.40
Buying price - Below Rs.80. (It went down till 90.30)
Returns - above 30% in next 2 to 3 years.
Taking into consideration Rs.90.30 as buying price following are the returns
84% Target acheived in month of 20 May 2009. It went high till Rs.167 (Updated - May 2009)
About company
1. The company manufacturers soap, hair color, toiletries, fabric care and hygiene categories.
2. The company is present in nearly 150 countries.
Taking into consideration current uncertain market conditions, Godrej will be stability to your portfolio as well decent upside in next 2 to 3 years.
Acquisition
Godrej has acquired South Africa based Kinky group in 2008.
The international operations now account for more than 20 per cent of GCPL’s consolidated revenues and comprises of companies like Keyline Brands (UK), Kinky Group (SA) and Rapidol (SA), catering to hair and personal care segments. Its subsidiary, Godrej Global Mideast FZE (UAE), manages distribution of the company’s products in the GCC region.
(Researched date - Oct 2008)
Marico
Returns
CMP - Rs.50.95
Buying price - Below Rs.40. (It went down till Rs.46.45)
Returns - above 20% to 30% in next 2 to 3 years.
Taking into consideration Rs.46.45 as buying price following are the returns
49.51% Target acheived in month of 24 April 2009. It went high till Rs.69.45 (Updated - May 2009)
Company profile
The company is into production of hair care, beauty care and wellness products.
Products
Parachute (coconut hair oil)
Saffola (edible oil)
Revive (fabric starch)
Medikar (hair care product)
Some advanced products are
Parachute advanced
Parachute jasmine
Parachute after shower hair cream
Saffola Atta mix for controlling cholesterol and diabetes.
Acquisitions
1. Company has acquired seven companies (two in India) since 2006, five of which are in the international markets namely
Bangladesh, Egypt and the recent one in South Africa (Enaleni Pharmaceuticals consumer division).
2. Marico’s international business, which contributes 12 per cent to its total revenues, is spread across three major growing
markets like Bangladesh, Middle-East and Egypt.
Growth oriented
1. The company today has about 50 Kaya skin clinics outlets spread across India (six added recently) and seven in overseas
market (mainly Middle East).
2. The company targets the high end skin care market and the high income upwardly mobile urban consumers in the tier I & II
cities.
3. Business from Kaya is expected to grow at more than 20 per cent, from about Rs.78 crore now, in the next few years.
(Researched date - Oct 2008)
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