Colgate's investors will have to wait a while to get their smile back

Impact of competitive intensity expected to be higher at a time when overall consumption demand is moderating

The competitive intensity denting market share of toothpaste major – Colgate Palmolive India – continues to hurt investor sentiment. With a 9 per cent fall in the last three months, shares of Colgate have underperformed the S&P BSE FMCG index, which has fallen by 2 per cent during the said period. However, things are still not supportive for the stock. In fact, the impact of competitive intensity could be felt more by Colgate given that consumption demand is moderating.

According to Centrum Institutional Research, Colgate’s management believes that the Patanjali effect has not waned, and competitive intensity is unlikely to