Buy Colgate; target of Rs 2450: Motilal Oswal

Buy

Motilal Oswal's research report on Colgate

Colgate’s (CLGT) delivered 2% YoY revenue growth to INR14.9b (est. INR14.9b) in 3QFY26, clocking positive growth after three consecutive quarters of decline. Toothpaste volume remained soft and contracted by ~2% (est. +1%, around -5% in 2QFY26). The price hike taken earlier helped Colgate deliver good revenue growth, but it was much lower than Dabur’s toothpaste growth of 10% YoY.

Outlook

The stock has been corrected by ~25% over the past 12 months. The stock is trading at a comfortable valuation of 38x and 35x P/E for FY27 and FY28. We reiterate our BUY rating with a TP of INR2,450 (based on 40x Dec’27).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Colgate_01022026_Motilal Oswal