Colgate-Palmolive India Ltd
Annual Report FY21 Summary
Going by many investment gurus, Colgate falls under the 'Keep it Simple' category. No buzzwords nor anything enticing.
Stock has given 14.25% CAGR returns since it got listed in 1994..27 years!
A Thread
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Ram Raghavan's(Managing Director) message to shareholders where he gives glimpse on innovations in Oralcare and new product launches.
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Innovations & launches (1) Colgate Vedshakti: Mouth protect spray & oil pulling (2) Diabetics Toothpaste (3) Visible White Instant Toothpaste (4) Zig-Zag Anti Bacterial & Turmeric Toothbrush (5) Super Flexi salt toothbrush (6) Gentle range of toothbrushes
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(7) Colgate-Palmolive Charcoal & Mint bodywash (8) Colgate DentistsforMe App for people to reach out to Dentists via their platform
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Initiatives towards Environment
All four manufacturing sites—Baddi, Goa, Sanand and Sri City are TRUE Zero Waste Platinum certified by Green Business Certification Inc. (GBCI). Our Sanand and Sri City manufacturing plants are LEED certified.
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Financial performance for FY21
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Board of Directors. I believe People who have been nurtured by company and grown to become leaders give lot of value to the company.
Mukul Deoras-Chairman-Joined since 2004
Ram Raghavan-MD- Joined as a Trainee
M Chandrasekar-Ex VP- Joined 1989
M.S. Jacob-CFO- Joined 1995
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Management Discussion & Analysis Report
90% of revenues come from Oral Care.
Four key drivers company has worked towards- assortment, availability, value and innovation.
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Details of technology imported by company
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Strong Balance Sheet. Income & Cashflow Statements
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Once company is able to increase it's sales on backing of new product launches, then Colgate should do extremely well.
A good compounder and I believe it falls under Charlie Munger's line - " Take a simple idea and take it seriously."
Many have questioned Trent's market cap as part of their valuation reasoning while the stock kept on appreciating with earnings growth & sustained buying from investors.
Let us look at Abercrombie & Fitch, a USA based company
Market Cap: 598 cr
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Abercrombie & Fitch on Wednesday reported net sales growth of 21% in the fourth quarter and 16% for 2023 as a whole, continuing a hot streak that has seen its stock price rocket almost 400% over the last 12 months.
Trent has been up 204% over the same last 12 months...
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A&B's biggest priorities now is international growth with a focus on Asia-Pacific and Europe; the U.S. currently makes up just over 80% of its business.
Their strategy is as simple as listening to their customers.
Stock has hit new high today & looking strong above August 2023 high of 332.90
Upside can scale 400-435-488 in MT
Few key points from Q2FY24 concall:
(1) Commercial launch of Dalbavancin has been received well (2) Intending to launch Meropenem in Q3FY24
#GUFICBIO
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(3) R&D team has been able to develop key life saving antifungal product that can be stored at room temperatures now which will eliminate the need for cold-chain handling (4) Their first in class antifungal product is also set for launch at a very revolutionary price point
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(5) Company has launched a very unique product called SeraSeal which is a hemostatic agent and this has gained acceptance in leading hospitals. It has also started demonstrating its effectiveness in actual surgical procedures.
Market Cap: 7689 cr
Face Value: 01
Market Cap to Sales: 5.00
PEG Ratio: 2.78
Cash Conversion Cycle: 188
All the three levers of its business showed upside potential at the same time during FY23
May 23: 100.00
August 23: 294.90
#HBLPower
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(1) HBL Power Systems is a technology driven engineering enterprise that develops niche solutions for demanding applications
(2) Business Segments with Contribution to Total Revenue:
(a) Industrial Batteries(69%)
(b) Defence & Aviation(17%)
(c) Electronics(11%)
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(3) Key Business Model Insights:
(a) Company works only in niche markets which are too small for big companies and too difficult for small companies
(b) Avoid capital intensive products and B2C businesses. Search for Engineering Intensive businesses to invest
(2) Reasons for loss or Inadequate profits for all Verticals:
(a) Shipping & Logistics: Privatisation of Berths, Bulk Handling being concentrated on Fertilizers, Coal, Food Grains which are largely dependent on changing of Government Policies & Weather Conditions.
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(b) Coffee Processing & Trading: Commodity nature of coffee crop, volatility in international movements of Price & movement of exchange rates.
(c) Rubber Plantation: Impact of drastic reduction of prices in the local & international markets & increased imports of products.
(3) At the end of FY23, company has changed its name from "Empyrean Cashews Ltd" to "Krishival Foods Ltd"
(4) Company has done a change in the nature of its business and also ventured into
-Almonds
-Dry fruits
Confectionery items
-Breads
-Biscuits
-Sweets
-Cakes
-Pastries