Shares of Colgate Palmolive (India) Ltd. (NSE: COLPAL) gained 2.27% in early trading on November 28, reaching ₹3,085.95. The surge comes after the company’s Investor Day, where management outlined its growth strategy, focusing on driving per capita consumption and promoting double brushing in urban markets. Additionally, initiatives like “Oral Health” aim to create awareness and improve rural penetration.
Despite these plans, brokerages expressed mixed views on the company’s growth prospects. Colgate’s strategy emphasizes balanced growth through a mix of volume, pricing, and premiumisation, but urban growth has slowed, and rural recovery remains flat. While management targets mid to high single-digit volume growth, concerns over weakening demand trends linger.
Global firms Goldman Sachs and Citi reiterated their ‘sell’ ratings on Colgate, citing a softening of category growth in urban areas and expectations of moderated earnings growth in the near term.
Disclaimer: This news report is based on market data and brokerage commentary and should not be considered as investment advice. Investors are advised to consult their financial advisors before making any investment decisions.
