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
1/n
Ram Raghavan's(Managing Director) message to shareholders where he gives glimpse on innovations in Oralcare and new product launches.
2/n
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
3/n
(7) Colgate-Palmolive Charcoal & Mint bodywash (8) Colgate DentistsforMe App for people to reach out to Dentists via their platform
4/n
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.
5/n
Financial performance for FY21
6/n
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
7/n
Management Discussion & Analysis Report
90% of revenues come from Oral Care.
Four key drivers company has worked towards- assortment, availability, value and innovation.
8/n
Details of technology imported by company
9/n
Strong Balance Sheet. Income & Cashflow Statements
10/n
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."
1/n Market Cap: 3,848 Cr.
Reserves: 771.04 cr
ROCE: 20.44 %
ROE: 17.64 %
Face Value:10.00
Debt to equity:0.14
Days Payable Outstanding:91.27
Days Receivable Outstanding:152.27
Inventory Turnover Ratio:0.26
Debtors Turnover:2.19
Current Ratio:2.17
OPM: 23.24%
NPM: 22.41%
EPS: 8.53
2/n Established- 1973
Located- Hyderabad, India
MIDHANI has been set up to achieve self-reliance in production and supply of various super alloys, special steels and materials to Defence, other Strategic Sectors such as, aerospace and energy.
Let's understand why we should keep this company in our radar and invest for good real upside in 2021 end-2022 onward
1/n Market Cap: 1,140 Cr.
Reserves: 555 cr
Face Value: 5.00
ROCE: 18.12 %
ROE: 14.43 %
Debt to equity: 0.06
Days Payable Outstanding: 52.53
Days Inventory Outstanding: 160.29
Days Receivable Outstanding: 67.05
EPS: 15.47
Debtor Turnover Ratio: 3.7
Inventory Turnover Ratio: 17.95
2/n The global synthetic leather market size: 2019: USD 29.2 billion
Projection by 2027: USD 52.96 billion
It is projected to expand at a revenue-based CAGR of 7.8% during the forecast period.
Mayur Uniquoters: Leading manufacturer of Artificial Leather/PVC Vinyl in the world
Presence in India: 90 years+
Number of Plants: 02 (Ballabgarh and Aurangabad)
Tyres supplied to: Passenger Car Segment (pioneer in introducing tubeless radial tyres in this segment) & Farm Segment
1/n Goodyear manufactures automotive tyres viz. farm tyres and commercial truck tyres at its Ballabgarh plant. It also trades in “Goodyear” passenger car tyres (Radial) for Consumer business which are manufactured by Goodyear South Asia Tyres Private Ltd (‘GSATPL’), Aurangabad.
2/n Other products which the Company markets and sells include tubes and flaps.
Sales performance during the year:
Tyres: 1654.19 cr
Tubes: 86.60 cr
Flaps: 0.31 cr
Consumer replacement business delivered a strong performance by growing faster than the industry in FY 19-20.