So many people ask what is the target of 4-5 Years, because we think the company could not survive too long. What about Colgate who is 214 years old established in 1806 in the US and providing his products to almost each and every country on earth, around 196 countries, yet listed only in two countries US and India. Have Biggest manufacturing facility in China. Long and consistent Profit making history makes its Investors super rich with consistent cash flow. Their revenue and Profits in India 2 decades back were around 1000 cr and 50 cr while today they make around 5000 cr and 775 cr respectively. Still 25% people in Rural India do not use toothpaste, they are the new target of companies. Currently Colgate has 55% Market share with no decrease in its share since the last many years, while HUL loses its share which was eaten by Patanjali as they emerged from 0 to 15%. Patanjali has already reached where Colpal was during the year 2000 with 1000 cr from Dant Kranti alone. Yet No de-growth by COLPAL due to high experience of decades even after Big competition from Patanjali.
9M revenue has grown by just 3% yet Profits have grown by 18% shows demand affected by slowdown but profits were good. Low Raw material Cost along with low advertisement during lockdown has helped grow Profits. Toothpaste grew well, but toothbrushes as a discretionary item suffered during lockdown. As the company is debtFree with rich cash flow they distributes around 80% profit back with dividends every year. New buying again can be done near 1200 (Upgraded from earlier 1150) and can hold it for long term wealth creation.