Jefferies has maintained its buy rating on Colgate-Palmolive (India) with a target price of ₹2,700 per share, saying that while Q2FY26 results reflected a decline across revenues, EBITDA, and earnings, the premium segment continues to demonstrate resilience amid broader market headwinds.
The brokerage said GST rate changes led to temporary destocking across the trade channel, impacting volume growth in the quarter. Despite the near-term weakness, Jefferies expects sequential improvement in sales and margins as restocking normalises and price benefits flow through to consumers.
It added that Colgate’s strategy of focusing on premiumisation and innovation is likely to support medium-term profitability, though earnings estimates have been trimmed by 4–5% to account for near-term growth volatility. The firm believes the stock will remain rangebound in the immediate term but reiterated its positive view, expecting stronger growth momentum once the sector stabilises post-transition.
Disclaimer: The views and recommendations above are those of Jefferies. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
