Colgate-Palmolive shares fall over 2% after Investor Day. What Goldman Sachs and other brokerages are saying
Should you buy, sell or hold the stock?
In an analyst note reported by ET Now, Goldman Sachs maintained its Neutral rating on Colgate Palmolive with a target price of Rs 2,050, implying a modest upside from current levels. The brokerage highlighted that Colgate’s strategy is aggressively pivoting toward volume recovery, premiumization, and category expansion. ET Now reported that while heavy step-ups in brand spending and advertising intensity could weigh on operational margins over the short term, structural cost savings from the company’s ‘Funding the Growth’ initiative will help cushion profitability.
Motilal Oswal maintained its Buy rating on Colgate Palmolive with a target price of Rs 2,500, implying a 27% upside from current levels. The brokerage noted that the core investment thesis remains intact as Colgate continues to lead and drive category expansion in India. It highlighted strong traction in science-led innovations like Colgate Strong Teeth with Arginine and rapid scaling in premium offerings such as Visible White Purple. Motilal Oswal expects sales to reach Rs 66.5 billion in FY27E and Rs 71.2 billion in FY28E, supported by steady volume execution and segment leadership.
Nuvama maintained its Buy rating on Colgate Palmolive with a target price of Rs 2,350, implying a 22.5% upside from current levels. The brokerage highlighted the company’s persistent focus on driving oral care penetration and expanding market reach. It noted that 45% of rural Indians still do not brush daily and 76% of urban Indians do not brush twice a day. Nuvama added that management’s decision to allocate roughly 16% of revenues toward brand building underscores a strategy centred on long-term category expansion over short-term margin maximisation, backed by a distribution footprint across 7.1 million stores.
Colgate management commentary
Managing Director Prabha Narasimhan emphasised that Colgate is best placed to lead and expand the oral care category in India. “Our strategy is clear: drive growth ahead of profitability,” management stated, pointing out that premium toothpaste share has expanded 2.5 times compared to 2021 levels and direct retail coverage now reaches 1.7 million outlets.
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