Shares of Colgate-Palmolive India opened sharply lower on Monday and fell more than 3% as rokerages remained divided on the stock even as some raised target prices following recent developments. Shares last traded 3.10% lower at Rs 2,100 apiece on the NSE. Jefferies remains the most bullish, raising its target to Rs 2,600, suggesting the stock has significant room to run.
In contrast, HSBC's target of Rs 2,150 suggests a marginal 0.3% downside, while Kotak Securities' target of Rs 2,025 indicates a 6.1% downside. CLSA's lower target of Rs 1,955 points to a steeper 9.4% downside.
Jefferies on Colgate-Palmolive (India) Ltd.
- Jefferies has maintained a Buy rating on Colgate-Palmolive (India) Ltd. and raised its target price to Rs 2,600 from Rs 2,500.
- It noted that the oral care category remains stable but growth variability persists
- FY27 expected to benefit from favorable base effect.
- The firm noted growth driven by balanced mix of volume and pricing.
- Premiumisation trend continues, with higher‑margin products gaining share, reports Jefferies.
- Margins impacted by higher ad spends and GST-related changes, said Jefferies.
- Co. focusing on cost control and mix improvement.
- The brokerage firm said Colgate's strategy prioritises volume-led growth over margin expansion
- Selective price hikes to offset input cost pressures, notes Jefferies.
- Digital, e‑commerce and new product initiatives continue to support long-term growth.
HSBC on Colgate-Palmolive (India) Ltd.
- HSBC has maintained its hold rating and raised the target price to Rs 2,150 from Rs 2,100.
- Q4FY26 revenue growth supported by premium portfolio, price hikes and improved ad spends.
- Premiumisation remains key long-term growth driver, notes HSBC.
- The firm says oral care category recovery is gradual.
- Gross margins stayed healthy despite input cost inflation.
- EBITDA growth aided by operating leverage.
- Max Fresh and premium brands continue to outperform, says HSBC.
- According to the brokerage, urban demand trends relatively better.
Kotak Securities on Colgate-Palmolive (India) Ltd.
- Kotak Securities has maintained a reduce rating and revised its target price to Rs 2,025.
- Q4FY26: Topline growth recovery; margins impacted by inverted duty structure
- The brokerage notes outlook as growth momentum to sustain; A&P step-up can impact EBITDA margin.
CLSA on Colgate-Palmolive (India) Ltd.
- CLSA has maintained a hold rating and increased its target price to Rs 1,955 from Rs 1,826.
- Volume & pricing growth drive beat, noted CLSA
- The brokerage firm said high demand elasticity to drive higher A&P.
- Focus is on driving category consumption and premiumisation.
- The brokerage expects GM to remain in its current range and A&P spending to step up.
ALSO READ: Colgate Q4 Results: Profit Flat As Margin Shrinks, Revenue Up 7%; Dividend Of Rs 24 Declared
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