Buy Colgate Palmolive; target of Rs 2200: Emkay

Brokerage house Emkay Global Financial Services is bullish on Colgate Palmolive (India) and has recommended buy rating on the stock with a target price of Rs 2200 in its research report dated July 20, 2015.

July 22, 2015 / 12:59 IST

26 Aug, 2025 12:21

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Emkay's research report on Colgate Palmolive (India)
Amid challenging demand environment and negative category growth, reports resilient 5% volume growth and market share gains in both Toothpaste and Toothbrush

Fiscal phase out from Baddi will increase excise duty and tax rates, thereby impact topline and profitability. However, drivers to growth remains intact led by strong innovation pipeline, premiumisation, aggressive expansion plans and distribution-led growth

Channelizing of ad & promotion spends on enhancing brand equity and innovation over increasing share of voice is reaping benefits. Expect premiumisation and focused ad spends to drive margin expansion thesis

Despite competitive intensity in oral care, company is confident of meeting growth targets. We remain positive on structural growth drivers of market share gains, innovation-led growth and premiumisation. Retain BUY with revised price target of Rs2,200/share.

Valuation and View - "Company seems to be in line with its strategy of focusing on breakthrough innovations, rising focus on value addition and premiumisation, gain market share and channelize spends towards branding & innovation over promotional activity. Long term growth drivers remain intact with strong franchisee and likely uptick in urban demand will further drive volume growth. We retain BUY with price target of Rs 2,200/share", says Emkay Global Financial Services research report.