Citi has reiterated its Sell rating on Colgate-Palmolive (India) Ltd, lowering its target price to ₹2,600 from the previous ₹3,000, citing increased competitive pressures and higher promotional intensity in a subdued demand environment.
The company’s consolidated revenue grew 5% YoY, largely in line with expectations. However, domestic business revenue increased only 3% YoY, lagging behind HUL’s oral care segment, which reported mid-single-digit growth.
Citi noted that increased trade and consumer promotions led to a decline in realization, while product pricing remained flat YoY. The brokerage believes that higher promotional activity driven by competition could continue to weigh on margins and growth.
At the current market price of ₹2,670, Citi’s revised target implies a downside risk for the stock.
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