CLSA has maintained its hold rating on Colgate-Palmolive (India) with a target price of ₹2,130 per share following a weaker-than-expected Q2FY26 performance, with sales declining 6.3% year-on-year and a miss across most key metrics.
The brokerage said while gross and operating margins expanded due to lower raw material costs, the improvement was insufficient to offset weak sales volumes. CLSA has cut its FY26–28 earnings estimates by around 4%, reflecting slower recovery expectations and sustained competitive intensity in the oral care market.
The firm added that Colgate continues to focus on product renovation and premiumisation while broadening its portfolio. Notably, the company has introduced a new body wash innovation as part of its strategy to diversify into adjacent personal care segments.
CLSA remains neutral in the near term, expecting modest recovery in the second half, aided by softer comparisons and marketing-led volume support.
Disclaimer: The views and recommendations above are those of CLSA. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
