Nuvama has maintained a Buy rating on Colgate-Palmolive India, setting a bullish target price of ₹3,135 per share. This implies a strong upside from the current market price of ₹2,375.90.
The brokerage noted that Q1 performance was weak, with both revenue and EBITDA declining year-on-year. The fall was attributed to subdued urban demand and a high base from the prior year. Toothpaste volumes dropped 2% YoY, following an 8–9% growth base.
Margins were under pressure as well. Both gross and EBITDA margins contracted due to elevated promotional intensity and lack of operating leverage in the quarter.
Despite the near-term weakness, Nuvama expects recovery to set in during the second half of FY26, supported by demand normalization and easing competitive pressures.
Disclaimer: The brokerage views expressed above are those of Nuvama. This article does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions.
