Shares of Colgate Palmolive (India) fell nearly 4 percent on Friday, following a 17.2 percent decline in net profit for Q2 and a 6.3 percent drop in revenue year-over-year.
Brokerages Divided
Market analysts have taken a cautious approach to the stock, issuing mixed recommendations. Motilal Oswal maintains that Colgate is well-positioned for recovery in the upcoming quarters, citing improving demand trends post-GST 2.0 implementation. The brokerage has issued a “buy” rating on the stock with a target price of ₹2,850.
Nuvama Institutional Equities acknowledged that while Colgate provides attractive valuations, the company needs to address margin pressures related to an inverted duty structure in Q3 and increased competitive intensity. They have retained a “buy” rating but reduced their target price from ₹3,135 to ₹2,870.
JM Financial has kept an “add” rating with a target price of ₹2,405. PL Capital has also maintained a “hold” recommendation, raising their target price from ₹2,453 to ₹2,534. They emphasized that the company’s long-term drivers, such as core toothpaste brands and premiumization through science-backed innovations, remain strong, yet heightened competition poses a significant concern.
InCred Equities has issued a “hold” rating, lowering their target price from ₹2,570 to ₹2,435, citing slower-than-expected sales growth as a downside risk, while noting that a quicker recovery in the core portfolio could present upside potential.
Global brokerages Citi, CLSA, Nomura, and Jefferies have also expressed differing views on Colgate-Palmolive. Citi has issued a “sell” rating with a target of ₹2,100. CLSA maintains a “hold” at a target price of ₹2,130, whereas Nomura has suggested a “reduce” rating with a target price of ₹2,200, attributing their stance to an 8.5 percent volume drop and stable margins resulting in limited profitability. Meanwhile, Jefferies has assigned a “buy” rating with a target of ₹2,700, highlighting resilient performance in the premium segment and expecting the stock to remain rangebound.
As of 12:32 PM, the stock was trading at ₹2,213.30 on the BSE, reaching an intraday low of ₹2,200.60, compared to the previous close of ₹2,288.80.
Published on October 24, 2025.
