Apr'25 View on Colgate-Palmolive (India) Ltd

Colgate-Palmolive India Ltd is engaged in manufacturing/ trading of toothpaste, tooth powder, toothbrush, mouthwash and personal care products. After falling from the high of 3900 level the stock is currently trading at 2400 levels and looks like to further fall to 2100 level due to following negative sentiments in the company • CGLT called out weakness in urban demand & heightened competition. • EBITDA declined by 3% yoy to Rs454.4 cr (~2.1% miss). • PAT declined 2.2% yoy to Rs322.8 cr (~3.2% miss). • Reported a sharp deceleration in domestic revenue growth in Q3 to 3.2% yoy. • We trim earnings by 2-5% and reduce FV to Rs2,750 (Rs2,825 earlier). • We expect earnings to grow by 5.7% in FY26E & grow by 9.8% in FY27E. • Stock is currently trading at valuation of 42.9x P/E FY27E EPS.