27-05-2025
Axis Securities maintains Buy on Colgate-Palmolive (India), lowers target price to Rs 2,830
Axis Securities
maintains the
Buy call
on
Colgate-Palmolive
(India) with a revised target price of Rs 2,830 (earlier Rs 2,950}. The current market price of Colgate-Palmolive (India) is Rs 2481.6. Colgate-Palmolive, incorporated in 1937, is a Large Cap company with a market cap of Rs 67436.12 crore, operating in the FMCG sector.
Colgate-Palmolive India
's key products/revenue segments include Personal Care, Service Income and Scrap for the year ending 31-Mar-2024.
Financials
For the quarter ended 31-03-2025, the company has reported a Standalone Total Income of Rs 1481.57 crore, down -.05 % from last quarter Total Income of Rs 1482.24 crore and down -2.06 % from last year same quarter Total Income of Rs 1512.66 crore. The company has reported net profit after tax of Rs 355.00 crore in the latest quarter.
The company's top management includes Deoras, Narasimhan, Mr.M S Jacob, Sharma, Natarajan, Pant, Bhushan, Gupta, Kripalu. Company has SRBC & Co LLP as its auditors. As on 31-03-2025, the company has a total of 27 crore shares outstanding.
Investment Rationale
Axis Securities appreciates the company's overall long-term strategy, which focuses on driving top-line growth through initiatives such as: 1) Launching science-based premium products to enhance overall realisations, 2) Developing the category by increasing awareness through marketing initiatives, 3) Increasing the frequency of consumption and penetration in rural markets, and 4) Expanding the personal care portfolio to mitigate risks associated with the slow-growing oral care category. Moreover, demand environment is likely to improve in the coming quarters (H2FY26), and the stock price correction of 35% from the latest high all provides a huge margin of safety. Hence, the brokerage maintains its BUY rating with a revised target price of Rs 2,830 /share, implying an upside potential of 14% from the CMP.
