Colgate-Palmolive (India) has reported a 12.4 percent rise in net profit for the second quarter of fiscal 2021 at Rs 274.2 crore as against Rs 244 crore in the year-ago quarter. The company's revenue increased by 5.3 percent to Rs 1,286 crore from Rs 1,221.8 crore, YoY. Domestic net sales for the quarter reported 7.1 percent growth.Earnings before interest, tax, depreciation and amortisation (EBITDA) in Q2FY21 rose 26.6 percent to Rs 409 crore from Rs 323 crore while margin expanded by 540 bps to 31.8 percent as against 26.4 percent the same period last year.Read here: Colgate Palmolive Q2 net profit rises 12 percent YoY to Rs 274.2 crore; declares interim dividend of Rs 18/shareHere’s what brokerages have to say:CLSAColgate reported a better-than-expected 2Q operational show, where topline growth at 5 percent YoY was in-line, while Ebitda margin expansion of 540 bps YoY to quarterly peak of 32 percent was better than our expectation. Toothpaste volume grew 3 percent, with stable market share. Natural as a trend has faded in the pandemic, which if sustained, will aid Colgate given its stronghold in the non-naturals part of portfolio.“We expect margin benefit to remain over the medium term and expect this to neutralise over the long term. As such, we raise our earnings expectations by 3-4 percent over FY21-22, while FY23 is unchanged,” CLSA said.CLSA upgraded the stock to Outperform from Underperform and raised the target price to Rs 1,525 from Rs 1,420 earlier.JefferiesColgate's GM & Ebitda margins climbed to all-time highs, contributing most to the 2QFY21 earnings beat. Ad spends declined YoY but, adjusted for lower rates, could be near-flat, in our view. Domestic revenue grew 7 percent YoY which was also positive. We are, however, surprised with the disclosure levels as Colgate stopped reporting underlying volume growth after discontinuing market share trend a few quarters back.The brokerage raised EPS by 7-9 percent and retained a Buy rating with an increased target price of Rs 1,700 from Rs 1,675 earlier.Motilal OswalThe brokerage maintains a buy on Colgate given that the nature of the category (98 percent of sales from oral care) offers less uncertainty currently. It has a best-of-breed balance sheet, valuations are moderate at 38x FY22E EPS, close to its 10-year average, and there is a spark of an incipient market share recovery under the new Managing Director, it said.“We arrive at a target of Rs 1,720 (target multiple of 40x September 2022E EPS, close to 5-year average),” Motilal Oswal said.HDFC SecuritiesColgate reported a healthy 2QFY21 with 5 percent net revenue growth (HSIE 4.5 percent) and 7 percent domestic growth. Volume and price have equally contributed to the revenue growth.Market share was stable during the quarter. GM expanded sharply (339bps YoY) owing to (1) price hike, (2) soft raw material and (3) favourable mix (lower revenue share of toothbrush and exports and higher share of larger pack size).“We expect gradual growth recovery with healthy margin expansion in 2HFY21 and increase our estimates for FY21/22 by 6/1 percent. We value Colgate at 40x P/E on Sep-22E EPS and derive a target price of Rs 1,529. Maintain ADD,” the brokerage said.ICICI SecuritiesThe brokerage believes Colgate benefited from a largely ‘essential’ portfolio, presence across the price-benefit pyramid – help capture any impact of downtrading and strong distribution reach, especially in rural India which was relatively less impacted.“Given largely essential product portfolio for Colgate, we expect the impact to be the least among HPC companies. Management continues to focus on driving growth through building brands and increasing household penetration, innovation, winning in emerging channels and strengthening its go-to-markets,” it said.ICICI Securities increased earnings estimates by 2 percent; modelling revenue / EBITDA / PAT CAGR of 6 / 11 / 12 ( percent) over FY20-22E. It maintained a Hold rating with a DCF-based unchanged target price of Rs 1,500.“Key upside risk to our thesis is a faster-than-anticipated recovery in macro driving premiumization and key downside risk is lower-than-expected market share gains,” it said.Yes SecuritiesColgate Palmolive reported good results and growth was broad-based across categories. Key innovations in quarter include Visible White Instant toothpaste, Colgate Gentle toothbrushes, Zig-Zag anti-bacterial and Vedshakti mouth spray. After the hiccup in 1Q, management credited the recovery to its strong supply chain and distribution efforts. Stock is trading at 35x FY23 earnings.At 12:20 pm, the shares of Colgate Palmolive (India) were trading 0.56 percent lower at Rs 1,417.35 on the BSE as against a 0.30 percent fall in the benchmark Sensex.