Colgate-Palmolive (India) Ltd. share price target

Maintain BUY ratings on with a revised TP at Rs 2,780.

Colgate Palmolive India’s Q1FY26 performance stood below our expectations across the board, reflecting persistent headwinds from tough operating conditions led by muted urban demand and elevated competition intensity.

With an upside of 12% from the CMP, we maintain our BUY rating on the stock.

Colgate’s Q1FY26 performance was weak with numbers missing estimates on all fronts. Standalone revenues declined by 4.2% y-o-y to Rs. 1,434 crore, missing our and the average street’s expectation of Rs. 1,525 crore and Rs. 1,498 crore, respectively.

We cut FY26/27 EPS by 7.1/7.4% given subdued urban demand, competitive pressures and little scope to increase margins from current elevated levels. CLGT 1Q26 was a miss on estimates with 4.4% revenue decline led by 2.8% volume decline (high base, subdued urban demand and intensifying competitive pressures). Near term outlook remains cautious as impact of high base, tepid urban demand, heightened competition and promotions/...

Colgate’s Q4FY25 performance was muted owing to soft demand in urban markets and heightened competitive intensity. Standalone revenues declined by 1.8% y-o-y to Rs. 1,463 crore, missing our expectation of Rs. 1,520 crore, with toothpaste volumes flat y-o-y.

Cautious outlook for 1H26 due to muted urban demand, expect recovery led by innovations & rural momentum post 2Q. increased promotional spending led by heightened competitive intensity. Near term outlook is cautious given that 1) urban demand continues to remain muted at mass end 2) heightened competitive landscape 3) rising promotional...

We've been long critical of Colgate India's (consistent) strategy of not investing (enough) for toothpaste category growth (our opinion), not aggressive (enough) in diversifying outside of oralcare (parent has a good HPC portfolio though), over-earning, in our opinion (operating margins at ~37% after adding back royalty).

With an upside 6% from the CMP, we maintain our HOLD rating on the stock.

Colgate’s ‘Investor Day’ showcased management effort toward driving category consumption and focus on enhancing consumer uptrade.

In FY24 and 1HFY25, CLGT achieved revenue growth of 9% and 11%, outperforming FMCG peers (refer to Exhibits 1/2). Volume growth remained flat in FY24 but improved to 7% in 1HFY25.

With a downside of -2% from the CMP, we recommend a HOLD rating to the stock

Colgate-Palmolive (India)’s (Colgate’s) Q2FY2025 numbers were mixed with revenue coming in line with expectations, while margins missed mark owing to higher advertising spends. Revenue grew by 10% y-o-y while OPM fell by 206 bps y-o-y leading to lower PAT growth at 3.9% y-o-y.

We reiterate our REDUCE call on Colgate due to a high base for growth delivery ahead. The company has executed well on oral care and consistently surprised the street with its performance.

we have a HOLD rating to the stock.