Colgate Q2 Review: Motilal Oswal Maintains 'Buy' Despite Muted Show, Sees 25% Upside — Here's Why

Colgate’s Q2 FY26 performance remained weak as its revenue fell 6%YoY to Rs 15.2 billion (in line) on a high base of 10% growth and due to the impact of GST-led transition (trade disruptions). .NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.We largely maintain our EPS estimates for FY26/FY27. Colgate-Palmolive India Ltd.’s performance has been relatively weak over the past three-four quarters, marked by muted revenue growth and margin contraction. However, following the implementation of GST 2.0, which reduced the GST rate on toothpaste from 18% to 5%, benefiting nearly 95% of the company’s portfolio, we believe Colgate is well-positioned for a recovery in the coming quarters, supported by improving demand trends. Colgate remains focused on driving sustainable revenue growth through multiple levers —launching science-backed, premium innovations to enhance realizations, expanding category reach through increased marketing and consumer education,deepening rural penetration to drive frequency and new user addition, and broadening its presence in personal care to reduce dependence on the slower-growing oral care category. .The stock has corrected ~30% over the past 12 months and is trading at a comfortable valuation of 45 times and 40 times P/E for FY26 and FY27, respectively. We maintain Buy rating on the stock with a target price of Rs 2,850 (45x Sep’27)..Click on the attachment to read the full report:.Colgate-Palmolive Q2 Review: Profit Drops 17%, Brokerages Turn Bearish, Cut Target Price .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Colgate Q2 Review: Motilal Oswal Maintains 'Buy' Despite Muted Show, Sees 25% Upside — Here's Why

Motilal Oswal believes Colgate is well-positioned for a recovery in the coming quarters, supported by improving demand trends.

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