CLSA also raised target price on Colgate to Rs 1,265 from Rs 1,120, implying potential upside of 20 percent.
Colgate Palmolive (India) share price gained 2.7 percent intraday Thursday after global brokerage firm CLSA upgraded the stock to Buy from Sell, citing attractive valuations.
The research house also raised target price on the stock to Rs 1,265 from Rs 1,120, implying potential upside of 20 percent.
Colgate has increased its growth focus and the promotion activity of the company is at best, it feels.
It believes the worst for the company seems to be over now as wholesale market is stabilising and competition peaked.
Currently Colgate's valuations are at a discount to its most peers. CLSA expects current valuations to sustain as outlook improves.
The share price fell more than 10 percent from September month compared 16 percent correction in Nifty FMCG index.At 11:52 hours IST, the stock price was quoting at Rs 1,079.80, up Rs 27.15, or 2.58 percent on the BSE.The Great Diwali Discount!
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