Accumulate Colgate Palmolive India; target of Rs 2429: Deven Choksey

Accumulate

Deven Choksey's research report on Colgate Palmolive India

Colgate-Palmolive India’s Q2FY26 performance stood below our expectations across the board, reflecting persistent headwinds from tough operating conditions, specifically caused by transitory disruption at distributors and retailers across channels caused by GST rate revision. The company’s revenue declined by 6.2% YoY (6.0% QoQ) to INR 15,195 Mn., impacted by a high growth base and GST led disruptions. Management remains constructive on growth, supported by the continued strong growth momentum of the premium portfolio (led by Colgate Visible White Purple), with recovery anticipated to be gradual in H2FY26E.

Outlook

We have rolled forward our valuation to Sept’27 estimates and assign a multiple of 41.0x Sept’27 EPS, deriving a target price of INR 2,429. We maintain our “ACCUMULATE” rating, as we believe that the recovery will be underpinned by new product launches, strong brand equity, and sustained premiumization trends.

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Colgate Palmolive India - 27102025 - deven