Colgate

Message

   Basant Sir, thats why I wanted that participants should quote their entry price ...it becomes more easy. I think its very difficult to exit from something which has given you an identity. Say for instance, even if you are the world's most disciplined investor, you will not like to book out of Pantaloon and I believe you should not as well. My family holding has a quite a decent exposure to Tata Power but my dad will not book out at all. His costing is Rs. 11. and he is recovering 80 p.c. of the initial investment by way of dividend every year. I think even Gaurang will not like to book out of Colgate. 

Also for Colgate, their restructuring scheme appears quite wonderful. they have reduced their capital by 90 p.c. Now, the share capital to reserve ratio will significantly improve. They have trimmed their balance sheet. Infact, this scheme has the potential to herald a culture of capital returns. Am quite surprised how this scheme could scrape through.....

Basant Sir, the results of Colgate were quite bombastic. I think retail culture will help Colgate to compete against marginal brands and will also help in brand building. Somehow I am of the opinion POS advertising is far more catchy and economical on the front of revenue per unit of ad spend, compared to media advertising. Although I have never been a thematic investor, but somehow whenever I visit any retail place I simply observe the pick up at toothpaste counter, health drink counter and I tend to become quite optimist about Colgate and Glaxos of the world....

Edited by Vivek Sukhani - 01/Dec/2007 at 8:31am